LONDON: Oil prices surged on Wednesday as escalating tensions in the Middle East raised concerns over global energy supplies, with crude gaining more than $3 a barrel after US-Iran military developments and a decline in US oil inventories.
Brent crude futures rose $3.30, or 3.9%, to $87.39 a barrel by 0300 GMT, while US West Texas Intermediate (WTI) crude increased $3.05, or 3.8%, to $82.31 a barrel.
The increase followed the US military’s announcement that it had intercepted ballistic missiles launched by Iran toward US forces in the Middle East. Washington described the incident as an attempted surprise attack by Tehran, while Iran’s Islamic Revolutionary Guard Corps said it had targeted a US air base and Central Command facility in Jordan.
صرح المتحدث الرسمي باسم وزارة الدفاع اللواء الركن تركي المالكي أنه إلحاقاً للبيانين الصادرين من وزارة الدفاع يومي الاثنين (١٣ صفر ١٤٤٨هـ) والثلاثاء ( ١٤ صفر ١٤٤٨هـ) الموافقين ( ٢٧- ٢٨ يوليو ٢٠٢٦م) من أن الدفاعات الجوية اعترضت ودمرت عدداً من المسيّرات التي حاولت استهداف منشآت… pic.twitter.com/0Pei5KwSkQ
— وزارة الدفاع (@modgovksa) July 29, 2026
Saudi Arabia also said its forces, in coordination with US Central Command, carried out targeted strikes against Iran-backed groups in eastern Iraq, which Riyadh blamed for drone attacks on its oil facilities.
ING analysts said the latest developments had reduced expectations for a quick de-escalation in the Persian Gulf, adding fresh support to oil prices.
“Renewed strength comes after the US said it intercepted a surprise attack on US troops,” ING analysts said in a note.
Additional support came from a decline in US crude inventories. Market sources, citing American Petroleum Institute data, said US stocks fell by around 3.3 million barrels in the week ended July 24. Official inventory figures from the US Energy Information Administration are expected later on Wednesday.
Oil markets were also supported by expectations that OPEC+ may pause production increases for three months starting in October. Sources said the group is likely to hold output steady after completing the planned return of barrels following voluntary production cuts.
The latest price movement highlights continued uncertainty in global energy markets as investors closely monitor geopolitical developments and future supply decisions by major oil producers.
