Oil prices jump over 7% as Middle East chaos flares up, brent crude back at $90
Oil prices surged over 7% following renewed military strikes in the Middle East involving the US, Saudi Arabia, and Iran-backed groups. The conflict has heightened concerns over global supply stability and disrupted shipping through the Strait of Hormuz.
Why it matters
Significant spikes in crude oil prices can lead to global inflationary pressure and increased energy costs for consumers and businesses worldwide.
Oil prices rallied sharply on Wednesday, with benchmark crude contracts gaining over 7%, after a fresh wave of military action in the Middle East reignited concerns over global oil supplies. The rally was also supported by industry data showing a drawdown in US crude inventories.Around 9 pm IST, Brent crude rose $6.28, or 7.47%, to $90.37 a barrel, while US West Texas Intermediate (WTI) gained $5.67, or 7.15%, to $84.93 a barrel.The latest jump followed renewed strikes involving the United States, Saudi Arabia and Iran-backed groups, reversing expectations that the US-Israeli war with Iran could soon move towards a resolution."Renewed military strikes in the Middle East and Iranian officials reiterating that they want to control shipping activity through the Strait of Hormuz amid depressed oil flows through the Strait are lifting oil prices again," UBS analyst Giovanni Staunovo told Reuters.The United States and Saudi Arabia carried out strikes on Iran-backed…
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in