International oil prices surged on Wednesday.
U.S. President Donald Trump announced that the United States and China had effectively reached a trade agreement, sparking optimism for increased oil demand.
Yet, concerns over potential oil supply shortages intensified.
Reports that the U.S. Embassy in Iraq was preparing for an evacuation further fueled the price surge.
The U.S. government reportedly has reportedly authorized military families to depart from the Middle East due to rising instability, and the U.S. Embassy in Iraq is preparing for evacuations.
The news was prompted by Iranian Defense Minister Aziz Nasirzadeh’s statement that Iran could target all U.S. military bases in the Middle East if nuclear negotiations with the U.S. collapse and conflict erupts.
U.S. forces are currently stationed in Iraq, Kuwait, Qatar, Bahrain, and the United Arab Emirates (UAE).
International oil prices surged by over 4%.
Brent crude, the global benchmark, jumped 2.90 USD (4.34%) to 69.77 USD per barrel for August delivery, marking its highest close since April 3.
West Texas Intermediate (WTI), the U.S. benchmark, soared 3.17 USD (4.88%) to 68.15 USD per barrel for July delivery, reaching its highest level since April 2.
