West Texas Intermediate (WTI) crude futures climbed 2.8% to $72.28 a barrel by 19:04 ET (20:26 GMT), while Brent crude futures rose 2.8% to $76.25 a barrel. The gains came as traders responded to increased geopolitical risk in the Middle East and potential tightening of global oil supplies.<\/p>\n
U.S. Central Command (Centcom) said it had begun a series of strikes against Iran aimed at imposing \u201cheavy costs\u201d for Tehran\u2019s attacks on commercial shipping. According to Centcom, the U.S. strikes were in response to Iranian attacks on three commercial vessels transiting the Strait of Hormuz, which the U.S. accused Iran of carrying out in violation of a ceasefire.<\/p>\n
The escalation raised fresh concerns over the security of the Strait of Hormuz, a critical maritime route for global oil shipments. The reported attacks on vessels attempting to cross the strait this week have increased uncertainty over the status of the waterway and the reliability of supply flows from the region.<\/p>\n
The U.S. also withdrew a key concession that had allowed Iran to sell oil internationally, effectively reimposing sanctions on Iranian oil exports. This step is seen as likely to tighten oil markets in the coming weeks by curbing available supply from Iran.<\/p>\n
Earlier, crude prices had fallen to pre-war lows in June after the U.S. and Iran agreed to a framework peace deal, which contributed to improved shipping flows through the Strait of Hormuz. The latest round of hostilities now threatens that agreement, with the outlook for future peace talks between the two countries described as uncertain.<\/p>\n
Analysts at OCBC noted that a return to full-scale U.S.-Iran conflict appears unlikely, citing growing U.S. political pressure to keep oil prices contained ahead of the November midterm elections. However, they also highlighted that there is still no clear path to fully securing the Strait of Hormuz.<\/p>\n
Renewed supply concerns in the Middle East have largely overshadowed indications of increasing supply from other sources, including an agreement by the Organization of the Petroleum Exporting Countries and allies to raise production following a weekend meeting.<\/p>\n
Why did oil prices rise on Wednesday?<\/strong> What actions did the U.S. take against Iran?<\/strong> How did WTI and Brent crude prices move?<\/strong> What is the status of the U.S.-Iran peace framework?<\/strong>
Oil prices rose after the U.S. launched new strikes against Iran, reimposed sanctions on Iranian oil exports, and tensions increased over attacks on vessels in the Strait of Hormuz, heightening concerns about potential supply disruptions.<\/p>\n
The U.S. military began a series of strikes against Iran and withdrew a key concession that had allowed Iran to sell oil internationally, effectively reimposing sanctions on the country\u2019s oil exports.<\/p>\n
West Texas Intermediate crude futures rose 2.8% to $72.28 a barrel, while Brent crude futures increased 2.8% to $76.25 a barrel by 19:04 ET (20:26 GMT).<\/p>\n
The latest hostilities risk undermining the framework peace deal agreed in June, and the prospects for future peace talks between the U.S. and Iran are now described as uncertain.<\/p>\n