(RTTNews) – Oil prices rose sharply on Wednesday as hostilities continued in the Middle East and industry data pointed to continued tightness in global oil supplies.
Brent crude futures jumped nearly 4 percent toward $87.40 a barrel, snapping a three-day losing streak after the U.S. and Saudi forces struck Tehran-backed targets in Iran and Tehran fired missiles at U.S. bases, reviving concerns over energy supply disruptions.
WTI crude futures were up 3.7 percent at $82.18 a barrel after the American Petroleum Institute reported a larger-than-expected draw in U.S. crude inventories for the week ending July 24.
It is estimated that crude oil inventories in the United States fell by 3.296 million barrels last week as against expectations for a 1.5-million-barrel draw.
The Energy Information Administration is scheduled to publish its weekly petroleum supply report later in the day.
Meanwhile, the U.S. Central Command said Iran had launched multiple ballistic missiles targeting U.S. troops across the Middle East that were successfully intercepted.
Saudi Arabia said it intercepted drones launched from Iraq and a Saudi tanker came under Houthi attack, underlining persistent regional tensions.
Iran reportedly rejected Oman’s proposal for shared 50-50 control of the Strait of Hormuz, maintaining that it ‘will accept no formula’ other than full control of the inbound shipping lane and part of the outbound route.
Earlier on Tuesday, U.S. President Trump warned that Washington could target key Iranian infrastructure, including “Kolang Mountain,” major bridges, and power plans if negotiations fail.
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