Oil Prices Rise Amid Escalating Middle East Tensions
Oil prices surged over 7% on Wednesday as renewed airstrikes in the Middle East heightened concerns about supply disruptions. U.S. and Saudi forces targeted Iran-backed groups, following reports of an averted Iranian attack on American troops. The Strait of Hormuz remains under scrutiny after Iran claimed to have fired at ships there and U.S.-owned tankers were hit by drones. The U.S. also imposed new sanctions targeting Tehran's economic activities in the region. Analysts noted that Brent crude prices are likely to remain volatile between $80-$100 per barrel as tensions fluctuate. Meanwhile, U.S. crude oil inventories dropped sharply last week to their lowest level since 2018 due to strong exports and demand. OPEC+ is expected to pause output increases for three months starting in October after completing a return of barrels following voluntary production cuts.