Oil Prices Surge Nearly 4% Amid US-Saudi Strikes and Iran Missile Interception

Oil prices surged nearly 4% on Wednesday due to supply concerns following joint US-Saudi strikes in Iraq and the interception of Iranian ballistic missiles targeting US forces.

The uptick was also supported by a decline in US crude oil inventories, which fell by about 3.3 million barrels in the week ended July 24, according to market sources citing data from the American Petroleum Institute.

'Renewed strength comes after the US said it intercepted a surprise attack on US troops,' ING analysts noted.

The latest developments dampen expectations for a swift de-escalation in the Persian Gulf, with OPEC+ likely to halt oil output increases for three months starting in October, sources told Reuters.