Oil Prices Edge Higher on Fresh US, Iran Tensions
Oil prices climbed more than 3% on Wednesday as investors feared supply disruptions after the US launched fresh strikes on Iran, commercial vessels came under attack in the Strait of Hormuz, and Washington tightened restrictions on Iranian oil exports.
International benchmark Brent crude traded at $76.64 per barrel at 9.37 a.m. local time (0637 GMT), up around 3.3% from the previous close of $74.16.
US benchmark West Texas Intermediate (WTI) rose about 3.3% to $72.83 per barrel from $70.44 in the previous session.
The latest escalation revived concerns over the security of energy shipments through the Strait of Hormuz, a vital artery for global oil and liquefied natural gas trade, after three commercial tankers were targeted in recent days.
Late Tuesday, the US military said it completed a new round of retaliatory strikes against Iran, hitting more than 80 targets in response to Tehran’s latest attacks on commercial vessels transiting the Strait of Hormuz.
US Central Command (CENTCOM) said its forces carried out offensive strikes targeting Iranian air defense systems, command-and-control networks, coastal radar sites, anti-ship missile capabilities, and more than 60 small boats belonging to Iran’s Islamic Revolutionary Guard Corps (IRGC) in and around the strategic waterway.
The military said the strikes were conducted “as an immediate response to Iran’s latest attacks on commercial vessels transiting the Strait of Hormuz.”
Explosions were reported early Wednesday in several areas of southern Iran, according to Iranian state media.
“CENTCOM forces remain postured and prepared to hold Iran accountable when the (ceasefire) agreement is not adhered to or obeyed,” it added.
The diplomatic standoff also intensified after Qatar summoned Iran’s deputy ambassador to protest what it described as an Iranian attack on the Qatari-owned vessel Al Rekayyat near the Strait of Hormuz.
In response, Iran’s Foreign Ministry spokesman Esmaeil Baqaei rejected the Qatari accusation, saying Tehran remains committed to ensuring safe navigation through the strategic waterway.
“Vessels that use routes not coordinated with Iranian authorities expose themselves to risks and disrupt the efforts of the Islamic Republic of Iran to facilitate safe traffic in the Strait of Hormuz,” Baqaei said.
Iran’s state broadcaster IRIB said on the US social media platform X, citing unnamed sources, that a Qatari oil tanker attempting to transit the Omani route through the Strait of Hormuz with US Navy support was targeted after ignoring repeated warnings from Iranian forces.
Adding to market jitters, the US Treasury Department revoked a license that had authorized the production, delivery and sale of Iranian oil under an agreement with Tehran.
“The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is revoking Iran-related General License X,” which allowed the production, delivery and sale of Iranian oil, the department said in a statement.
Financial news broadcaster CNBC quoted a US official as saying: “As President (Donald) Trump and the administration have repeatedly affirmed, the MOU (memorandum of understanding) in effect with Iran is entirely performance-based.”
“Iran will only reap benefits if they exhibit good behavior,” the unnamed official reportedly said. “Iran’s actions in the Strait were wholly unacceptable to the United States and will be met with consequences.”
About one-fifth of the world’s seaborne crude oil passes through the Strait of Hormuz, making any disruption there a potential threat to global oil and LNG supplies.
Analysts said the renewed tensions have pushed a geopolitical risk premium back into oil prices. They added, however, that gains could fade if diplomatic efforts resume and shipping through the Strait of Hormuz continues without further disruption. #Oil Prices Edge Higher on Fresh US, Iran Tensions#
