Oil prices hit new recent highs as missile strikes on top crude exporter Saudi Arabia added to the market's worries about escalating conflict between the United States and Russia in Syria.
Brent, the benchmark for international oil prices, earlier climbed to its highest level in more than three years after U.S. President Donald Trump earlier warned Russia to "Get ready" for a U.S. missile attack on Syria, whose government Moscow has backed during its seven-year civil war.
The threat came after the Russian ambassador to Lebanon said his nation's military would intercept American missiles and potentially target the U.S. craft that fired them. The potential American strike follows a chemical attack on the rebel-held city Douma, allegedly by forces loyal to Syrian President Bashar Assad.
Brent crude prices were at $72.46 U.S. a barrel, up $1.42, or 2% from Tuesday's closing price, the highest level since Dec. 2, 2014, when it hit $73.03.
U.S. West Texas Intermediate crude were up $1.49, or 2.3%, to $67 U.S., after touching a session high going back to Dec. 4, 2014, when it touched $68.22.
Experts are sure the morning price spike was completely due to the Trump tweet, which left the market to parse the president's meaning. The question is whether he will order the military to solely target Syrian assets, or take aim at Iran, which also backs Assad and has a large presence in Syria.
Such an attack would come just one month before Trump faces a deadline that could see him restore sanctions on Iran, third largest oil producer among the Organization of the Petroleum Exporting Countries (OPEC)
In other news, U.S. commercial crude inventories rose by 3.3 million barrels in the week through April 6.
Analysts had anticipated a decline of 189,000 barrels a day. Figures released Tuesday afternoon by industry group the American Petroleum Institute had suggested crude stocks rose by 1.8 million barrels a day.
