Oil prices surged nearly 3% in early Wednesday trade as renewed Middle East hostilities threatened one of the world's most critical oil transit routes. The spike followed US military strikes against Iran after Iranian attacks on commercial vessels in the Strait of Hormuz, according to reports from the Times of India Business Desk.
Price Reaction
Around 7:15 am IST, Brent crude was trading at $75.54 a barrel, up 1.86%, while WTI crude stood at $71.81 a barrel, up 1.94%, after earlier surging as much as 3%, the Times of India reported.
| Contract | Price (per barrel) | Intraday Change |
|---|---|---|
| Brent crude | $75.54 | +1.86% (surged 3% earlier) |
| WTI crude | $71.81 | +1.94% (surged 3% earlier) |
Geopolitical Trigger
The price jump came after the United States launched military strikes against Iran in response to Iranian attacks on commercial vessels in the Strait of Hormuz, according to US Central Command. The attacks targeted three vessels transiting the Strait on Tuesday, stoking fears that the fragile truce between Washington and Tehran was beginning to unravel.
Iran’s latest attacks struck a liquefied natural gas tanker, an oil supertanker, and a third, unspecified tanker in or near the Strait of Hormuz, according to the Joint Maritime Information Center, a US-led naval group. Qatar blamed Iran for striking the vessels, including the Qatari LNG tanker Al Rekayyat, which was reportedly hit by a drone, triggering a fire in its engine room. The crew remained safe and were being evacuated.
Separately, maritime security sources cited by Reuters said a Saudi-flagged crude oil tanker, believed to be the supertanker Wedyan, was damaged off the coast of Oman.
“This is part of this sporadic targeted campaign by Iran to destabilize that southern corridor and send a message to Gulf state producers that are not sending their oil via that northern corridor,” said Michelle Wiese Bockmann, senior maritime intelligence analyst at Windward.
Supply Disruption Fears
The attacks have reignited fears that tanker traffic through the Strait of Hormuz could face further disruptions. Although Iran had pledged to ensure safe passage under its interim agreement with the United States, Tehran later insisted that vessels use a northern route under its control. It has since attacked ships using the US Navy-protected route along Oman’s coast. Ships are now avoiding the traditional route through the middle of the Strait of Hormuz because Iran mined it.
Following the attacks, the Joint Maritime Information Center warned mariners that the threat level for ships crossing the Strait had risen to "severe", saying hostile action by Iran was likely.
US Policy Response
The United States Treasury Department revoked its authorization for Iranian oil sales earlier this week, according to the report. The department had previously waived sanctions on Iranian oil through August 21 after Washington and Tehran reached an interim agreement last month to reopen the Strait of Hormuz. The waiver had allowed imports of Iranian crude into the US and payments to Tehran in US dollars, among other provisions. The revocation further tightens pressure on Iran's oil exports and adds supply risks to global markets.
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