US-Saudi Strikes Revive Oil Price Rally Amid Escalating Middle East Tensions
Oil prices rebounded on Wednesday after joint strikes by the United States and Saudi Arabia against Iran-backed groups in Iraq, as well as the interception of Iranian ballistic missiles targeting US forces. The moves reignited concerns over escalating tensions in the Middle East.
The strikes followed recent drone attacks on Saudi oil facilities, which Washington blamed on Tehran. However, Iran rejected the accusations, calling them a 'major miscalculation.'
Markets had earlier grown optimistic about diplomatic efforts after Israeli Prime Minister Benjamin Netanyahu's meeting with US President Donald Trump in Washington. Trump later said there was a good chance talks with Iran would make progress, but Tehran has denied seeking negotiations or a ceasefire.
The recovery also came as the American Petroleum Institute reported that US crude inventories fell by around 3.3 million barrels last week, signaling resilient demand ahead of official government data due later on Wednesday.