Oil prices rise US Iran tensions continued to affect global markets on Wednesday as crude prices climbed more than $3 per barrel following military developments in Iraq and rising concerns over Middle East security. Investors reacted to fears of possible disruptions in global energy supplies.
Brent crude futures increased by $3.30, or 3.9%, reaching $87.39 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude gained $3.05, or 3.8%, to $82.31 per barrel as traders monitored escalating regional tensions.
The price increase followed joint US and Saudi strikes in Iraq and reports of ballistic missile activity involving Iran. Market analysts said the developments reduced expectations for a quick reduction in tensions across the Persian Gulf.
ING analysts said renewed market strength came after the United States reported intercepting what it described as a surprise attack targeting American forces in the Middle East. Saudi Arabia also reported intercepting drones launched by Iran-backed groups targeting energy infrastructure.
The US military said it intercepted ballistic missiles launched toward US forces in the region. Iran’s Revolutionary Guards later claimed responsibility for missile strikes targeting a US air base and a military command centre in Jordan.
Oil markets also received support from falling US crude inventories. Market sources said US crude stocks declined by around 3.3 million barrels during the week ending July 24, based on American Petroleum Institute data.
Analysts said the latest developments could keep pressure on oil prices as geopolitical risks remain high. Meanwhile, OPEC+ is expected to potentially pause further production increases after completing the planned return of supply cuts, which may provide additional support to crude markets.
