Oil prices climb over $1 per barrel as US launches new strikes against Iran

Oil prices saw an increase of over a dollar per barrel in post-settlement trading on Wednesday, following fresh U.S. military strikes against Iran.

Both major crude benchmarks had previously settled at their highest levels in more than two weeks. This surge occurred after U.S. President Donald Trump indicated potential new strikes against Iran and declared an interim deal to end the Iran war "over," though he later ruled out a full-scale conflict.

Brent crude futures last traded up at $79.28 a barrel, after closing Wednesday's session up more than 5 percent at $78.02. U.S. West Texas Intermediate crude futures were trading at $74.76 a barrel, up from their session settlement of $73.52.

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The U.S. military's Central Command announced on Wednesday it was launching fresh strikes on Iran aimed at keeping the Strait of Hormuz open to traffic.

The U.S. military's Central Command announced the strikes were intended to maintain open traffic through the Strait of Hormuz. Explosions were reported by Iranian media in several locations, including Bandar Abbas, Abu Musa, and Bushehr. These actions follow a recent escalation in tensions, including Iranian attacks on ships in the Strait of Hormuz, which led the U.S. to revoke sanctions relief previously granted for Iranian oil sales.

Iran stated on Wednesday that it had struck U.S. military sites in Bahrain and Kuwait, prompting the U.S. retaliatory strikes. The Strait of Hormuz is a critical chokepoint, with approximately one-fifth of global oil supplies traversing it prior to the Iran war. Tehran's control over the waterway has been a significant leverage point in the ongoing conflict, which began with U.S. and Israeli airstrikes against Iran on February 28.

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Ongoing U.S. strikes against Iran are expected to be bigger than attacks carried out on Tuesday.