LONDON — Oil prices surged by nearly 7% on Wednesday following the resumption of major airstrikes in the Middle East, crushing earlier hopes of an imminent diplomatic resolution to the conflict involving the United States, Israel, and Iran. Brent crude futures jumped $5.70, or 6.8%, to settle at $89.79 a barrel by 1335 GMT, while U.S. West Texas Intermediate (WTI) crude gained $4.94, or 6.2%, reaching $84.20 a barrel. The dramatic market spike was fueled by renewed military engagements, including U.S. and Saudi strikes against Iran-backed groups in Iraq in retaliation for drone attacks, alongside President Donald Trump’s promise of further retaliatory measures.
Compounding supply concerns, Tehran officially rejected Oman’s proposal for the regional joint management of the vital Strait of Hormuz, maintaining a bottleneck that has severely choked Gulf trade and oil flows for months. Market analysts noted that while U.S. crude inventories fell by approximately 3.3 million barrels according to American Petroleum Institute data, the broader price floor will likely hover between $80 and $100 per barrel as the regional conflict ebbs and flows. Additionally, reports indicate that OPEC+ is widely expected to pause planned oil output increases for three months starting in October, providing further upward pressure on global energy markets.
