Crude Oil Prices Surge Nearly 2% as US-Iran Conflict Escalates, Brent Nears $100

Crude oil prices traded higher for a fourth straight session on Wednesday and gained around 2 per cent or over $1 as fresh attacks involving Iran, the United States and Saudi Arabia heightened concerns over supply disruptions in the Gulf. Brent crude rose as much as 1.79 per cent or $1.76 to near $100 a barrel, while US West Texas Intermediate crude gained 1.88 per cent or $1.75 to $94.78 a barrel. Brent prices have climbed more than 20 per cent since early August as hopes for a permanent resolution to the six-month-old conflict faded and fighting intensified across the region. Both benchmarks remained in technically overbought territory.

Brent's previous close was its highest since July 23 for a second consecutive session, while WTI settled at its highest level since June 4. The latest price surge came after Iran-backed Houthi forces in Yemen attacked four cities in southern Saudi Arabia, a US ally on Tuesday, injuring more than 70 people and setting oil installations on fire, according to reports.

Reports suggest Saudi warplanes carried out airstrikes in Yemen's Jubah district, east of the capital Sanaa, and in Taiz province in the southwest. Iran's Revolutionary Guards said they had attacked two US destroyers and a US base in Jordan's Al Azraq with ballistic missiles in retaliation for US attacks on Iranian oil tankers, according to them.

Moreover, Jordan's air-defence systems intercepted 18 of 20 ballistic missiles launched from Iran, while two landed in unpopulated areas, with no casualties reported, state media said citing the military. US Secretary of State Marco Rubio warned Iran that Washington would continue striking Iranian oil tankers in retaliation for attacks on US warships. Iran continues to attempt attacks on US naval ships and for every time they do that or try to do that they're going to lose tankers, Rubio told reporters during a visit to Colombia.

Disclaimer: "This story has been published from a syndicated news feed. Only the headline and subtitle have been edited by EPN."