Oil prices surged more than 7% on Tuesday after the United States and Saudi Arabia launched airstrikes against Iran-backed groups in Iraq, reversing a brief market rally that had followed a pause in hostilities.
Brent crude rose to around $90 a barrel and US WTI climbed above $84 as tensions escalated following Iran's attacks on ships in the Strait of Hormuz and US bases in Jordan. President Donald Trump vowed retaliatory strikes against Iran in a Fox News interview, while Tehran rejected an Omani proposal for joint management of the strategic waterway and seized three tankers.
Adding upward pressure, US crude inventories fell by 7.2 million barrels last week and OPEC+ is expected to halt output increases for three months starting in October.