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Oil prices rose sharply in Asian trading following a surprise missile attack by Iran on U.S. forces in the Middle East.

Oil prices spiked in early Asian trade on Wednesday, erasing a significant portion of Tuesday's selloff. Brent crude climbed to $87.95 per barrel, while West Texas Intermediate traded at $82.89 per barrel. The price increase was driven by renewed hostilities in the Middle East, specifically a surprise attack where Iranian forces launched multiple ballistic missiles at U.S. bases. While all missiles were successfully intercepted, the U.S. and Saudi forces responded with precision strikes against terrorist logistics and weapons sites in eastern Iraq. Additionally, a sizeable draw in U.S. crude inventories was reported by the American Petroleum Institute, with stockpiles falling by approximately 3.3 million barrels. The American Petroleum Institute report also noted that the Strategic Petroleum Reserve released 3.7 million barrels, hitting its lowest level since March 1983. Traders are now monitoring military escalation and the upcoming EIA inventory report for further price movements. Volatility remains the primary characteristic of the oil market as the Iran war continues.

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