Oil jumps nearly 4% after Iraq strikes and Iran missile fire
What's new: Brent climbed to about $87 a barrel as U.S. crude stockpiles fell and hopes for a quick Gulf de-escalation faded.
Oil prices rebounded sharply Wednesday after the United States and Saudi Arabia carried out strikes in Iraq and Washington said it intercepted Iranian ballistic missiles aimed at U.S. forces in the Middle East. Brent crude rose 3.9% to $87.39 a barrel, while U.S. West Texas Intermediate gained 3.8% to $82.31. The move reversed losses from a day earlier, when prices fell on hopes that a pause in U.S. strikes on Iran could open a diplomatic off-ramp. Saudi Arabia said it struck Iran-backed groups in Iraq after drone attacks on its oil facilities, and Iran’s Revolutionary Guards said they fired missiles at a U.S. air base and military command center in Jordan. Market support also came from a reported 3.3 million-barrel drop in U.S. crude inventories.