Middle East conflict reignites, sending oil prices soaring

Global oil prices jumped again on Wednesday after a brief lull in fighting between Iran and the United States was shattered by renewed attacks in the Middle East. The pause, lasting about three days, ended when Iran launched missiles at American forces, while the U.S. military and Saudi Arabia struck Tehran-backed militias in Iraq.

The price of Brent crude, the global benchmark, climbed to over $90 per barrel on Wednesday morning. The American benchmark, West Texas Intermediate, also saw a significant increase, jumping to more than $84 per barrel. Western Canada Select was trading around $67 per barrel.

These price hikes reflect renewed fears about the global flow of oil. Earlier this month, Brent crude prices swung between a low of $72 per barrel and a high of $102 amid uncertainty over a potential deal to ensure the free movement of oil tankers from the Middle East. The Strait of Hormuz, through which approximately 20 percent of the world's oil supply normally travels, has seen its flow reduced to a trickle since the conflict began.

The recent volatility in oil prices has also intensified worries that inflation, which had started to slow, might re-accelerate. Hopes for an extended ceasefire between the U.S. and Iran had previously offered some relief.