Oil Prices Rise 5% on Iranian Energy Facility Threats

Oil prices surged more than 5% on Wednesday after Iran's Revolutionary Guards threatened to attack energy facilities across the Middle East, raising the risk of significant supply disruptions. Brent futures rose $5.26 to $108.66 a barrel, while United States West Texas Intermediate crude gained $2.44 to $98.65. The spread between the two benchmarks reached its widest point since 2019 as the market reacted to reports of a strike on the South Pars gas field, a major escalation in the conflict involving Israel.

"The attacks on Irans South Pars field were boosting oil and gas prices, and any further escalations of attacks to energy infrastructure would continue to raise prices, Seaboard Corporation analyst Ole Hvalbye said."