Crude Surges Over 2.5% After US Strikes Iran, Renewed Supply Concerns

Crude oil prices witnessed a sharp rise on Wednesday after renewed military tensions between the United States and Iran triggered concerns over possible disruptions to Middle East oil supplies.

Brent crude was trading at $76.15 per barrel, up 2.68%, while US West Texas Intermediate (WTI) crude gained 2.80% to reach $72.41 per barrel during early trade.

The increase followed US airstrikes on Iran after attacks on three commercial vessels passing through the Strait of Hormuz.

Washington also reinstated sanctions on Iranian crude sales, increasing uncertainty over the future of the fragile ceasefire between the two countries.

The Strait of Hormuz remains one of the world’s most critical energy transit routes, handling nearly one-fifth of global energy supplies before the conflict escalated.

Any disruption to shipping activity through the narrow waterway can quickly affect global oil markets.

Saul Kavonic, Head of Research at MST Marquee, said the latest developments highlighted the vulnerability of shipping routes through the Strait. He warned that continued tensions and reduced tanker movement could create supply constraints and keep oil prices elevated.

Crude prices had declined sharply after the US and Iran agreed to a temporary truce last month, with investors expecting increased oil availability from the region.

However, the latest escalation has reversed those expectations and revived concerns over supply security.

According to reports, Brent and WTI crude had already gained around 3% on Tuesday after the US withdrew the licence that had allowed Iranian crude exports to continue.

The situation has also raised fresh concerns over maritime security in the Gulf region. Qatar accused Iran of targeting three commercial vessels, including a Qatari liquefied natural gas tanker that caught fire after being hit by a drone.

A Saudi Arabian crude tanker was also reportedly damaged near Oman, although the cause of the incident remains unclear.

Iran has reportedly advised ships to move closer to its coastline instead of following the traditional route near Oman, while the US has maintained that the Strait of Hormuz must remain open for international shipping.

Adding further support to oil prices, US crude inventories declined last week, suggesting steady demand. Data from the American Petroleum Institute indicated another fall in stockpiles, while analysts had expected inventories to drop by about 2.4 million barrels.

Meanwhile, Iran accused the US of violating the ceasefire agreement through military strikes, renewed sanctions and threats of additional action. Iran’s top negotiator Mohammad Bagher Ghalibaf said Washington had breached the truce through its latest measures.