Oil prices surged on Wednesday as geopolitical tensions between the U.S. and Iran showed no signs of easing. Brent crude jumped by over 4% to nearly $70 per barrel, while U.S. West Texas Intermediate (WTI) also rose sharply, closing above $68.

The sharp price increase was largely driven by growing uncertainty in the Middle East. The U.S. has announced a partial evacuation of its embassy personnel in Iraq due to escalating security threats. In addition, military families are being allowed to voluntarily depart the region, signaling concern over the potential for conflict.

These developments came after the United Kingdom Maritime Trade Operations issued a warning about increased risks of military activity in the area, raising concerns among global oil traders.

Adding to the tension, President Donald Trump expressed skepticism over the possibility of reaching a nuclear agreement with Iran. In his view, Iran is deliberately stalling negotiations. He emphasized that the U.S. does not want war but will act if necessary to prevent Iran from developing nuclear weapons.

Iran responded strongly. Its defense minister stated that U.S. military bases in the region are well within Iran’s striking range and would be targeted if provoked. These remarks further heightened fears that the region could see an escalation in military actions.

As a result, oil traders reacted quickly, pricing in the risk of potential supply disruptions in the Middle East—a region that accounts for a large portion of the world's oil production. Whenever there is instability in this area, markets tend to become highly volatile.

For now, the focus remains on how the situation develops. Any signs of de-escalation could bring oil prices back down, while further provocations could push them even higher. Until then, uncertainty will likely continue to drive price fluctuations.