Oil Prices Surge on Hostilities Between US, Iran

Oil prices surged on Wednesday following an Iranian missile attack on US forces and co-ordinated strikes by the US and Saudi Arabia on Iraqi militias.

Brent, the benchmark for more than two-thirds of global oil, increased as much as 5% after the hostilities reignited, with Brent trading 4.27% higher at $87.68 a barrel at 7:52 am UAE time.

West Texas Intermediate, the gauge for US oil, rose 4.18% to $82.57 a barrel, reversing a 16% drop over the past three sessions, the biggest three-day slump for crude since 2020.

The surge in oil prices follows the recent 60-day ceasefire between the US and Iran, which has now been undermined by the latest flare-up.