Oil Prices Surge Past $90 as Middle East Tensions Escalate
Global oil prices surged above $90 per barrel on Wednesday as tensions in the Middle East escalated, fueled by renewed military strikes and supply fears.
The price hike follows a sharp rally after three consecutive sessions of decline, with Brent crude rising to $90.39 per barrel. The increase is attributed to mounting concerns over supply disruptions, particularly through the Strait of Hormuz, one of the world's most critical energy transit routes.
US and Saudi strikes on Iran-backed groups in Iraq and a surprise Iranian missile attack targeting American troops in the region have heightened tensions. Shipping activity through the strategic waterway remains subdued, with only a few commodity vessels transiting the Strait this week.
UBS analyst Giovanni Staunovo attributed the market reaction to renewed military strikes and Iranian officials reiterating their desire to control shipping activity through the Strait of Hormuz amid depressed oil flows. The conflict is expected to remain volatile in the near term, with Brent oil prices potentially whipsawing in the $80-$100 per barrel range.