Oil prices soared by over 3% on Wednesday as tensions escalated between Israel, the U.S., and Iran, following Iran’s largest missile attack on Israel. Iran launched over 180 ballistic missiles, marking its most significant direct strike on the region. The growing conflict sent Brent crude prices up by $2.26 (3.07%) to $75.82 per barrel, while U.S. West Texas Intermediate (WTI) crude surged by $2.38 (3.42%) to $72.22 per barrel.
This price hike follows a 2.5% gain on Tuesday, reflecting mounting concerns over potential supply disruptions. The situation intensified as Israel deployed forces into Lebanon to combat Hezbollah, an Iran-backed group. Despite international pleas for restraint, the conflict shows no signs of de-escalating.
Iran claimed its missile attacks would cease unless further provoked, but Israel and the U.S. have warned of possible retaliatory strikes. Experts caution that any attacks on Iran could target vital oil infrastructure, which would further destabilize the global oil supply. Key shipping routes, such as the Strait of Hormuz, could be disrupted, causing prices to skyrocket.
While tensions rise, Iran’s oil production reached a six-year high of 3.7 million barrels per day in August. However, analysts warn that any further escalation could drag the U.S. into a broader conflict, complicating global markets. Iran supplies about 4% of the world’s oil, and disruptions could have widespread effects.
OPEC+ ministers, including Russia, are monitoring the situation but have not announced immediate policy changes. The group plans to increase production in December, but Saudi Arabia has cautioned that prices could drop if members don’t adhere to production limits.
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