US-Saudi Strikes Against Iran-Aligned Groups Send Oil Prices Soaring

Oil prices rebounded after joint US-Saudi military strikes against Iran-aligned groups in Iraq. The attacks, which targeted logistics and weapons facilities in eastern Iraq, were a response to more than 30 drone attacks directed by Iran's Islamic Revolutionary Guard Corps (IRGC) over the previous 72 hours.

The US Central Command said the unwarranted attacks against US forces were not successful. Separately, the Saudi Defense Ministry stated that joint strikes against targets belonging to Iran-aligned groups in Iraq were carried out in response to attacks launched from Iraqi territory on petroleum facilities in the kingdom.

Brent crude futures for October traded at $84.64 per barrel, up 3.12% from the previous close of $82.08. US benchmark West Texas Intermediate (WTI) futures for September increased 3.57% to $82.09 per barrel, compared with $79.26 in the previous session.

Iran's deputy foreign minister said Tehran's final proposal to Oman on reopening the Strait of Hormuz requires one shipping lane and part of a second lane to remain entirely under Iranian control.