Oil prices climbed by more than $3 per barrel on Wednesday as renewed military tensions in the Middle East heightened concerns over potential supply disruptions and tightened global energy markets.
Brent crude futures rose $3.30, or 3.9 percent, to $87.39 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $3.05, or 3.8 percent, to $82.31 per barrel by 0300 GMT.
The price rally followed reports of coordinated military operations involving the United States and Saudi Arabia in Iraq, as well as the interception of ballistic missiles launched by Iran toward U.S. forces in the Middle East.
Analysts at ING said the renewed strength in oil prices reflected rising geopolitical risks in the region.
According to the firm, the United States intercepted what it described as a surprise missile attack targeting its troops, while Saudi Arabia reportedly intercepted drones launched by Iranian-backed groups in Iraq that were aimed at Saudi energy infrastructure.
The analysts added that U.S. and Saudi forces subsequently carried out strikes on weapons sites in eastern Iraq, further escalating regional tensions.
The latest developments have weakened expectations of a near-term de-escalation in the Persian Gulf, a region that remains critical to global crude oil supplies.
The U.S. military confirmed that it intercepted ballistic missiles launched by Iran toward American forces in the Middle East, describing the incident as an attempted surprise attack.
Iran’s Islamic Revolutionary Guard Corps later announced that it had fired several ballistic missiles at a U.S. air base and a U.S. Central Command facility in Jordan.
Oil prices also received additional support from declining U.S. crude inventories, reinforcing expectations of tighter supply amid growing geopolitical uncertainty.
Investors are expected to continue monitoring developments in the Middle East, as any further escalation could increase volatility across global energy markets and place additional upward pressure on crude oil prices.
