Middle East Attacks Escalate; Oil Prices Surge Nearly 7%
Oil prices surged sharply during Wednesday's trading (July 29) following an escalation of airstrikes in the Middle East. Brent crude rose 6.8% to US$89.79 per barrel, while WTI gained 6.2% to reach US$84.20 per barrel.
The rally followed strikes by the United States and Saudi Arabia against Iran-backed groups in Iraq. These attacks were carried out in retaliation for drone strikes targeting Saudi Arabian oil facilities.
Tensions mounted further after the US military announced it had thwarted a surprise Iranian attack on American forces. Iran also claimed responsibility for firing upon vessels in the Strait of Hormuz and a US military base in Jordan.
Oil prices spiked again after President Donald Trump vowed retaliatory action against Iran. This statement dampened hopes that the conflict could be resolved quickly through diplomatic channels.
Iran also rejected a proposal from Oman regarding the joint management of the Strait of Hormuz. Meanwhile, US crude oil inventories reportedly fell by approximately 3.3 million barrels during the week ending July 24.
Oil prices could remain elevated if attacks persist and shipping routes through the Strait of Hormuz are disrupted. OPEC+'s plan to halt production increases for three months starting in October could also intensify pressure on global supplies.
Source: Newsmaker.id