Global oil prices surged by more than 3% on Wednesday after the United States launched strikes against Iran in response to attacks on three oil tankers in the Strait of Hormuz.
The price of Brent crude rose 3.2% to US$76.54 per barrel in Wednesday morning trading, while West Texas Intermediate (WTI) crude also climbed 3.2% to US$72.72 per barrel.
In recent weeks, prices for both benchmark crudes had fallen back to levels seen before the United States and Israel launched strikes against Iran in late February. Iran subsequently retaliated with attacks elsewhere in the region.
As the conflict in the Middle East intensified, global oil prices surged, reaching nearly US$120 per barrel in March.
The U.S. Central Command (CENTCOM) said the “powerful” strikes were carried out in response to Iran’s attacks on vessels transiting the Strait of Hormuz and would “impose significant costs on Iran for attacks against commercial shipping.”
Shortly before the strikes, the United States reimposed sanctions on Iran’s oil trade. The sanctions had been temporarily lifted under a provisional agreement signed in June aimed at ending the conflict and reopening the Strait of Hormuz. They were reinstated following the attacks on the three tankers.
In response to the U.S. operation, Iran launched strikes against Bahrain and Kuwait.
Oil prices jump after renewed Middle East escalation
