US oil prices jump after US military launches strikes against Iran

U.S. oil prices surged on Wednesday, climbing nearly 3% in early trading. This rise extended the previous session's gains, driven by U.S. military strikes against Iran. The action has intensified worries that a fragile truce in the region is faltering.

“

U.S. oil prices jumped nearly 3 per cent in early trade on Wednesday, extending the previous session's gains, after the U.S. military launched a series of strikes against Iran, heightening concerns that a fragile truce was faltering.

The U.S. Central Command stated the strikes were a direct response to Iranian attacks on three commercial vessels transiting the Strait of Hormuz. U.S. West Texas Intermediate crude saw a significant jump, up $1.95, or 2.8%, to $72.39 a barrel as of 2215 GMT.

This escalation follows Tuesday's settlement, where WTI closed 2.8% higher. The gains were further boosted in post-settlement trade after the U.S. revoked a general license that had authorized the sale of Iranian crude. This decision came in the wake of the Iranian attacks on commercial vessels.

“

The strikes against Iran were in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz, U.S. Central Command said on Tuesday.

Qatar has attributed the attacks on vessels, including the large liquefied natural gas tanker Al Rekayyat, to Iran. The Al Rekayyat reportedly sustained damage from a drone strike that ignited a fire in its engine room, though its crew was reported safe and undergoing evacuation. A Saudi-flagged crude oil tanker, identified as the supertanker Wedyan, also suffered damage off the coast of Oman, though the exact cause remained unclear.

“

The crew were safe and being evacuated.

The renewed tensions have reignited fears of potential disruptions to vital tanker traffic navigating the Strait of Hormuz, a critical chokepoint for global oil supply.

“

The developments reignited fears of disruptions to tanker traffic through the Strait of Hormuz.