Oil prices surged on Wednesday after the US launched military strikes against Iran, escalating tensions in the Middle East and raising fresh concerns over disruptions to global energy supplies.
Brent crude climbed as much as 2.8% to trade above $76 a barrel, while US benchmark West Texas Intermediate (WTI) rose above $72 a barrel.
The move came after the US said it had carried out “powerful strikes” against Iranian targets in response to a series of attacks on commercial vessels in the Strait of Hormuz, one of the world’s busiest energy shipping routes. According to Iranian media, explosions were reported on an island near the strait, while Tehran vowed to respond.
The latest escalation also saw the US Treasury revoke a sanctions waiver that had allowed Iran to continue limited oil exports under last month’s interim peace agreement. The decision effectively tightens restrictions on Iranian crude sales once again.
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The renewed conflict has reignited fears over oil supply disruptions. The Strait of Hormuz handles nearly one-fifth of global oil trade, making any military activity in the region a major concern for energy markets. Three commercial vessels, including a Saudi oil tanker and a gas carrier, were reportedly attacked, marking the biggest security incident in the waterway since the US-Iran truce was reached.
The rally reverses much of the optimism that had pushed oil prices sharply lower in the second quarter. As tensions eased earlier this year, OPEC+ had begun unwinding production cuts and banks such as Goldman Sachs warned that the market could move into a supply surplus.
Brent’s prompt spread moved back into backwardation — a bullish market structure where near-term contracts trade above longer-dated ones — indicating expectations of tighter supplies in the weeks ahead.
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