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Oil Surges 2.9% as US Strikes on Iran Threaten Hormuz Ceasefire
US retaliatory strikes on Iran after attacks on commercial ships threaten to undo the ceasefire that had reopened the Strait of Hormuz, lifting oil prices 2.9%.
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Oil prices jumped Wednesday after the U.S. launched fresh strikes on Iran in retaliation for attacks on three commercial vessels near the Strait of Hormuz.
West Texas Intermediate crude for August delivery rose 2.87% to $72.46 a barrel. Brent crude for September settlement gained 2.75% to $76.18 a barrel.
The U.S. military said it had begun a "series of powerful strikes" against Iran, warning Tehran would face "heavy costs" for targeting commercial shipping. The attacks on the vessels Tuesday drew a swift response from Washington. "Iran's demonstrated aggression was unwarranted, dangerous, and a clear violation of the ceasefire," Centcom said in a post to X.
The latest exchange tests a fragile truce reached last month that had reopened the Strait of Hormuz for commercial shipping after months of disruption. The ceasefire had removed a significant risk premium from crude prices. Wednesday's move largely reversed that discount.
Signaling the administration's hardening stance, the Treasury Department withdrew a waiver Tuesday that had allowed Iran to sell its oil. "Iran will only reap benefits if they exhibit good behavior," a U.S. official told CNBC on condition of anonymity to discuss private talks. "Iran's actions in the Strait were wholly unacceptable to the United States and will be met with consequences."