Oil surged to two-month high on Middle East tensions, US-China trade optimism
The rally was triggered by reports that the United States is preparing to evacuate its embassy in Iraq due to heightened security threats across the region.
Global crude oil prices soared over 4% on Wednesday, hitting their highest levels in more than two months, as escalating geopolitical tensions in the Middle East stoked fears of potential supply disruptions.
Brent jumped $2.90, or 4.34%, to settle at $69.77 a barrel.
WTI climbed $3.17, or 4.88%, to $68.15.
Both benchmarks closed at their highest since early April, marking a sharp reversal after weeks of subdued trading.
The rally was triggered by reports that the United States is preparing to evacuate its embassy in Iraq due to heightened security threats across the region. The development added to growing market jitters, following a warning from Iran that it could target US military installations if regional conflict intensifies, according to AFP.
Adding further momentum to the price surge was news of a breakthrough in US-China trade relations. The announcement of a new trade deal between the world’s two largest economies raised prospects for a rebound in global energy demand, injecting fresh bullish sentiment into the market.
-end-