Oil Prices Surge as US-Iran Tensions Escalate with Airstrikes
Oil prices surged nearly 1% in early trade on Wednesday, extending the previous session's gains, as concerns over supply disruption intensified following a series of airstrikes between the US and Iran.
The Brent crude futures rose by 87 cents, or 0.92%, to $95.52 a barrel, while US West Texas Intermediate crude futures climbed 80 cents, or 0.89%, to $91.02.
The strikes marked the most serious escalation of tensions between the two countries in weeks, with both sides trading attacks overnight. The US said its airstrikes were in response to recent attempted attacks by Iran's Islamic Revolutionary Guard Corps (IRGC) against commercial shipping and American service members deployed to the region.
The IRGC claimed that the US attacks would further restrict traffic through the Strait of Hormuz, a critical waterway that carried about one-fifth of global oil consumption before the conflict.