Oil prices have surged as renewed fighting in the Middle East undermines diplomatic efforts to end a five-month-old conflict. Following a period of lull and hopes for a resolution in the U.S.-Iran war that had previously caused oil prices to decline by over $1 per barrel, tensions have flared up again.
Crude oil jumped after Iran launched an attack on U.S. forces using ballistic missiles, which the U.S. stated it intercepted. This escalation has left investors concerned about the continued flow of energy from the region and caused U.S. stock futures to dip.
Consequently, oil prices climbed more than 3 per cent. Brent climbed toward US$87 a barrel, while West Texas Intermediate was near US$83.