Canada Commodities: Oil Higher as US-Iran Hostilities Resume, Saudi Arabia Joins Conflict
Crude oil prices jumped Wednesday, reversing three days of declines, after President Trump said Tuesday night the US will hit Iran "hard" for an attempted surprise attack on American forces in the Middle East. US Central Command did not specify location details.Brent crude futures for September was up 8.1% to $90.90 per barrel, while West Texas Intermediate futures, the US benchmark, advanced 7.7% to $85.37.The rise comes as Saudi forces joined the United States to strike several sites in eastern Iraq, retaliating against drone attacks on Saudi territory. The renewed fighting is again lowering hopes for a full return of supply from the Persian Gulf, which accounted for 20% of daily oil demand before the war blocked the Strait of Hormuz.Gold was last seen down 0.8% to $4,065.80, the lowest level since last October. Traders are waiting to see if the US Federal Reserve's policy committee will announce an interest rate hike when it ends its two-day meeting at 2:00 p.m ET on Wednesday.Wheat futures edged up 0.08% to $6.63 per bushel, while canola futures fell 0.96% to C$775.40 per tonne.
