WTI crude rises nearly 4% after Saudi and US forces retaliate against Iran-aligned groups, ending a three-day sell-off.
Oil prices reversed a two-day decline, with West Texas Intermediate trading above $81 and rising nearly 4% as Middle East hostilities intensified. The rebound follows retaliatory strikes by Saudi and US forces against Iran-aligned groups in Iraq, disrupting a brief truce-driven sell-off.
Brent crude had fallen from over $100 per barrel last Thursday to $84.09 at Tuesday’s close, marking its sharpest three-day decline (-16.5%) since April 2020. Analysts noted the recent calm in oil markets was shattered by renewed geopolitical risks, including US interception of Iranian attacks on its bases.
Markets now await the Federal Reserve’s interest rate decision later in the US session, with risk sentiment remaining fragile amid escalating tensions.