Oil Prices Surge After US Strikes Iran Over Hormuz Shipping
The U.S. Central Command announced that U.S. forces have begun a series of air strikes against Iran in retaliation for Iranian attacks on three commercial vessels transiting the Strait of Hormuz, which it said violated the cease‑fire. The strikes were accompanied by the re‑imposition of U.S. sanctions on Iranian oil exports.
In response, West Texas Intermediate (WTI) crude futures climbed 2.8% to $72.28 a barrel and Brent crude rose 2.8% to $76.25 a barrel as of 19:04 ET (20:26 GMT). The price surge reflects renewed fears of supply disruptions in the Middle East.
The renewed hostilities follow Iran’s reported attacks on vessels attempting to cross the Strait of Hormuz earlier in the week and come shortly after the United States withdrew a key concession that had allowed Iran to sell oil internationally. Analysts noted that the withdrawal could tighten global oil markets in the coming weeks.
The escalation reverses a trend that had seen crude prices fall to pre‑war lows in June after the United States and Iran reached a framework peace agreement, which had improved shipping flows through Hormuz. The latest round of conflict casts doubt on the prospect of further peace talks.
Despite the heightened tension, the Organization of the Petroleum Exporting Countries (OPEC) and its allies confirmed at a weekend meeting that they will increase production, but analysts said the renewed Middle‑East supply concerns largely outweigh any additional output.