Oil Prices Surge Amid US-Iran Tensions and Resumed Strikes

Oil prices have surged as tensions between the US and Iran flared again, raising fresh concerns over supply disruptions in the Middle East after Washington reinstated pressure on Tehran and resumed military strikes.

The US Treasury’s Office of Foreign Assets Control (OFAC) on Tuesday revoked a two-month sanctions relief license for Iranian oil following reports of attacks on commercial tankers in the Strait of Hormuz. US forces also carried out a new wave of strikes against targets inside Iran overnight into Wednesday.

September Brent crude futures rose as much as 6% on Wednesday from the previous close to $78.53 per barrel, while August WTI crude futures climbed 5.91% to $74.6 per barrel.

Washington and Tehran reached a two-month ceasefire agreement on June 18, intended to create conditions for negotiations on a broader settlement between the two countries.

The US has accused Iran of violating the ceasefire and threatening maritime security through attacks on commercial shipping, prompting what officials Washington described as a military response.

Iranian state broadcaster IRIB reported a series of explosions overnight, saying seven blasts were recorded near the village of Taherui in Sirik County and another six near the city of Qeshm.

The Wall Street Journal and Axios cited US officials as saying on Tuesday that Iran’s Islamic Revolutionary Guard Corps (IRGC) had attacked several tankers in the Strait of Hormuz despite the ceasefire.

According to the UK Maritime Trade Operations (UKMTO), an unidentified projectile struck a tanker off the coast of Oman, causing a fire on board. The WSJ reported that one of the damaged vessels may have been the Al Rekayyat, a tanker owned by Qatar’s Nakilat. The vessel reportedly sustained damage near its engine room, while all crew members remained safe. Axios said the targeted ships suffered only limited damage.

On Wednesday, US President Donald Trump told journalists that the ceasefire between Washington and Tehran was no longer in effect. Trump said he would not prevent US diplomats from holding talks but did not believe they would produce any results.