Oil Prices Jump 3% After US-Iran Strikes

Oil Prices Jump 3% After US-Iran Strikes

In early trade on Wednesday, U.S. Central Command announced that U.S. forces had begun a series of strikes against Iran in retaliation for Iranian attacks on three commercial vessels transiting the Strait of Hormuz. The statement also noted that the United States reimposed sanctions on Iranian oil following the attacks, and withdrew a key concession that had previously allowed Iran to sell oil internationally.

The geopolitical escalation lifted crude prices sharply. West Texas Intermediate (WTI) futures rose 2.9% to $72.45 a barrel by 19:04 ET (23:04 GMT), while Brent crude settled up 5.5% at $75.94 a barrel, reflecting a 3%‑plus increase in global oil benchmarks. Indexes tracking crude futures showed gains of 5.49% for LCO, 2.80% for CL, and 5.25% for Crude Oil Futures (Derivatives) in U.S. dollars.

The renewed hostilities revived concerns over supply disruptions in the Middle East, outweighing recent signs of increased supply elsewhere. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) had agreed in a weekend meeting to raise production, but the new round of conflict is expected to tighten markets in the coming weeks.

Crude oil prices had fallen to pre‑war lows in June after the United States and Iran signed a framework peace deal that had improved vessel flows through the Strait of Hormuz. The latest strikes cast doubt on the durability of that agreement and make future peace talks between the two countries uncertain.