Oil Prices Jump as Middle East Conflict Re‑ignites
Brief Lull Ends, Rockets Hit US Forces
After a short pause in hostilities between Iran and the United States, the standoff that had lasted roughly three days was shattered when Iran launched a volley of rockets at American troops in the Middle East on Tuesday. At the same time, the U.S. military coordinated with Saudi Arabia to strike Tehran‑backed militias operating in Iraq.
Benchmark Crude Surges Above $90
On Wednesday morning, Brent crude, the global benchmark, climbed past $90 per barrel, while the U.S. benchmark West Texas Intermediate broke the $84 level. The price increase was driven by worries that the renewed fighting could disrupt normal oil flows worldwide.
Western Canada Select Holds at $67
Western Canada Select was trading around $67 a barrel on the same day, reflecting regional price pressures amid the broader market rally.
Price Volatility Reflects Uncertainty Over Tanker Deals
Brent had swung as high as $72 earlier this month and touched $102 last week, as markets grappled with uncertainty about whether the United States and Iran could reach an agreement that would permit oil tankers to move freely from the Middle East to global customers again.
Strait of Hormuz Flow Slows, Raising Supply Concerns
The passage through the Strait of Hormuz, which normally carries about 20 % of the world’s oil, has slowed to a trickle since the war began, heightening concerns over potential supply shortages.
Inflation Fears Return as Oil Prices Spike
Recent swings in oil prices have revived worries about a resurgence of inflation, a trend that had just begun to ease after hopes of a longer cease‑fire between the United States and Iran emerged.
