Trump Threats Send Oil Prices Soaring on Escalating Middle East Tensions

Oil prices surged to a 7% increase on Wednesday after President Donald Trump vowed retaliatory strikes against Iran in an interview with Fox News.

The escalation of airstrikes in the Middle East and Iranian officials' stance on controlling shipping through the Strait of Hormuz also contributed to the price hike. US West Texas Intermediate (WTI) crude gained $5.15, or 6.5%, to $84.41 a barrel, while Brent futures were up $6.23, or 7.4%, at $90.32 a barrel.

The US and Saudi Arabia launched strikes on Iran-backed groups in Iraq, blaming them for drone attacks on Saudi oil facilities. The strikes came after the US military said it had averted an Iranian attack on its troops in the region.

Tehran has ruled out Oman's proposal for joint management of the Strait of Hormuz, further raising concerns about oil flows through the waterway. Only a few commodity ships have transited through the strait this week, while five ships passed through the Bab el-Mandeb strait yesterday and 39 on Tuesday.