Oil prices jump as coordinated US-Saudi military action against Iran-backed groups raises supply disruption fears.
West Texas Intermediate crude futures climbed 3.2% to $81.00 in early European trading Wednesday. The rally follows joint US-Saudi airstrikes on Iran-aligned military groups in Iraq, escalating tensions in the Middle East and stoking concerns over prolonged energy supply risks.
Prior to the attacks, WTI traded near $77.16, with analysts expecting a test of the 50-day high above $92. Subdued traffic in the Strait of Hormuz, a critical chokepoint for 20% of global oil supply, has further tightened market conditions amid reports of Iranian forces targeting tankers.
Investors await the Federal Reserve’s policy decision later Wednesday, with markets pricing a 69.5% chance of unchanged rates at 3.50%-3.75%.