Oil prices surged sharply at the start of trading on Wednesday after U.S. military forces reported fresh strikes against Iran and the reimposition of sanctions on Iranian oil in connection with attacks on vessels in the Strait of Hormuz.
West Texas Intermediate crude futures jumped 2.9% to $72.45 per barrel as of 02:04 Moscow time. Brent had yet to begin trading after closing Tuesday with a 5.5% gain at $75.94 per barrel.
The U.S. Central Command (Centcom) announced the launch of a series of strikes against Iran, aimed, in its words, at inflicting “heavy losses” on Tehran for attacks on commercial shipping.
“U.S. strikes are a response to Iranian attacks on three commercial vessels transiting the Strait of Hormuz,” Centcom stated, accusing Iran of violating the ceasefire regime.
The resumption of hostilities and signs of renewed shipping disruptions in the Strait of Hormuz have reignited concerns about potential interruptions in oil supplies from the Middle East.
The attacks also came shortly after the United States revoked a key concession that had allowed Iran to sell oil on international markets — a move that could tighten conditions in the oil market in the coming weeks.
According to available data, Iran targeted ships attempting to navigate the Strait of Hormuz this week, escalating tensions with the U.S. and creating fresh uncertainty over the status of this strategically vital waterway.
Oil had fallen to pre-war lows in June after the U.S. and Iran agreed on a framework peace deal, which also helped improve shipping traffic through the Strait of Hormuz.
However, the latest round of confrontation threatens to undermine that agreement, and the prospects for future peace talks between the two nations now appear highly uncertain.
Renewed fears over Middle Eastern supply have largely outweighed signs of growing output from other regions — despite the Organization of the Petroleum Exporting Countries and its allies agreeing to boost production at a meeting over the weekend.
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