LONDON: Global oil prices climbed sharply on Wednesday after renewed military tensions between the United States and Iran threatened a fragile ceasefire and raised fresh concerns over energy supplies through the Strait of Hormuz.
Brent crude, the international benchmark, rose more than 3 percent to $76.48 per barrel by 06:30 GMT, its highest level since June 23, reversing earlier declines that had returned prices to pre-conflict levels.
The surge followed US military strikes on Iranian targets and Washington’s decision to revoke a temporary sanctions waiver that had allowed limited Iranian oil exports.
What Triggered the Latest Market Volatility?
The escalation came after attacks on three commercial vessels in the Strait of Hormuz, which US, Qatari and Saudi officials blamed on Iran.
In response, the US launched a series of military strikes against Iranian targets, saying the action was intended to deter further attacks on international shipping.
The US Treasury Department also revoked its 60-day waiver permitting transactions involving Iranian oil, effectively tightening sanctions and restricting new purchases and shipments after July 17.
How Has Iran Responded?
Iran has denied direct responsibility for the attacks on the commercial vessels but has warned that ships using routes through the Strait of Hormuz without its approval could face consequences.
Iranian Deputy Foreign Minister Kazem Gharibabadi condemned the US decision to revoke the sanctions waiver, describing it as a violation of the memorandum of understanding signed between Washington and Tehran on June 17.
Tehran said it would take “decisive actions” to safeguard its national interests and security.
What Are Analysts Saying?
Market analysts said uncertainty surrounding the Strait of Hormuz continues to pose significant risks to global energy markets.
They noted that unresolved disagreements over the legal status of the strategic waterway and continued military activity could keep oil prices elevated for an extended period.
Analysts also warned that any sustained disruption to shipping through the Strait of Hormuz—which carries a substantial share of global crude exports—could tighten global supply and increase price volatility.
How Have Financial Markets Reacted?
Asian financial markets posted mixed performances following the latest escalation.
Stock markets in Tokyo and Seoul declined amid heightened geopolitical uncertainty, while shares in Taipei and Hong Kong recorded gains.
Investors remain focused on developments in the Gulf as concerns grow that continued instability could affect global energy supplies, inflation and broader economic growth.