Oil prices climbed sharply in early trading on Wednesday after the United States announced new military strikes against Iran. The move followed fresh attacks on commercial vessels in the Strait of Hormuz, one of the world’s most important oil shipping routes.
The market reaction was immediate. West Texas Intermediate crude futures rose 3.2% to $72.69 per barrel by 02:44 ET. Brent crude also gained 3.2%, reaching $76.56 per barrel.
US Launches New Strikes Against Iran
U.S. Central Command said it had started a new round of strikes against Iran. According to Centcom, the action was designed to impose heavy costs on Tehran after attacks on commercial shipping.
The U.S. said the strikes came in response to Iranian attacks on three commercial vessels moving through the Strait of Hormuz. Washington also accused Iran of violating the ceasefire agreement.
Hormuz Shipping Fears Return
The renewed tensions have raised fresh concerns about oil supply disruptions in the Middle East. The Strait of Hormuz is a critical route for global energy markets, so any threat to shipping can quickly affect crude prices.
Reports that Iran had attacked vessels crossing the waterway added more uncertainty. As a result, traders are now watching closely for signs of further disruption.
Oil Sanctions Add More Pressure
The latest escalation also came shortly after the U.S. removed a key concession that had allowed Iran to sell oil internationally. This decision could tighten global oil supply in the coming weeks.
Crude prices had previously fallen to pre-war lows in June after the U.S. and Iran agreed to a framework peace deal. That agreement had also helped improve shipping flows through Hormuz.
However, the latest round of hostilities now threatens to weaken that deal. Future peace talks between Washington and Tehran also appear less certain.
Analysts Warn of Continued Uncertainty
OCBC analysts said a return to full-scale conflict between the U.S. and Iran still appears unlikely. They pointed to growing political pressure in the U.S. to keep oil prices under control ahead of the November midterm elections.
However, they also warned that there is still no clear solution for fully securing the Strait of Hormuz.
OPEC Production and US Inventories in Focus
The renewed supply concerns overshadowed signs of higher output from other producers. Over the weekend, OPEC and its allies agreed to increase production.
Traders are also waiting for U.S. inventory data due later on Wednesday. The figures could provide more clues about supply conditions in the world’s largest oil consumer.
The American Petroleum Institute reported that U.S. crude inventories fell by 0.399 million barrels last week. That drawdown was smaller than expected.
Oil Markets Remain on Edge
Oil markets are now focused on the next developments in the Middle East. Any further disruption in the Strait of Hormuz could keep upward pressure on crude prices.
At the same time, higher OPEC production and U.S. inventory data may help limit the rally. For now, traders remain cautious as geopolitical risks return to the center of the oil market.
