Will Joint US-Saudi Strikes Cause Oil Prices to Soar?

The situation in the Middle East is heating up after Iraq received a series of strikes from a joint US-Saudi air force. The United States and Saudi Arabia described the strikes against several pro-Iran militias in Iraq as retaliatory attacks. It is understood that Iraq had previously targeted US forces and Saudi oil facilities with drones.

The joint strikes occurred after Saudi authorities successfully foiled a drone attack targeting oil facilities in Eastern Saudi Arabia. Saudi authorities also blamed a number of Iran-backed groups in Iraq for the attack.

At least 20 members of the former pro-Iran paramilitary alliance, the Popular Mobilisation Forces (PMF), were killed in the joint strikes conducted on Wednesday (29/7). In response, global oil prices fluctuated during Wednesday’s trading.

Brent crude futures surged 7.9% to close at US$90.74 per barrel. Meanwhile, US West Texas Intermediate crude strengthened 6.6% to settle at US$84.46 per barrel.