Oil up on Wednesday

Oil prices surged over $1 on Wednesday due to escalating Middle East tensions following Iran’s military strike on Israel, raising concerns of crude supply disruptions. Brent rose 1.36 per cent to $74.56, and US WTI gained 1.53 per cent to $70.9.

Earlier, both benchmarks spiked over 5 per cent as supply fears overshadowed a weak global outlook. Iran warned of severe retaliation if Israel responded, further heightening risks to oil supplies.

Analysts noted Iran’s 4 per cent contribution to global output and the potential for Saudi Arabia to offset any disruptions. OPEC+ is expected to maintain its plan to increase production by 180,000 barrels per day starting in December.

Attribution: Reuters

Subediting: M. S. Salama