Oil prices surged Thursday after the United States (US) launched fresh airstrikes against Iran and reinstated sanctions on Iranian crude sales, stoking fears of fresh disruptions to global energy supplies through the Strait of Hormuz.
As per the details, brent crude futures rose to $76.08 a barrel before climbing above $80 for the first time in two weeks, while US West Texas Intermediate crude advanced to $74.52 a barrel after earlier trading at $72.26. The rally gathered pace after Washington revoked a temporary sanctions waiver that had allowed Iranian crude exports.
The latest escalation followed attacks on commercial vessels transiting the Strait of Hormuz, a strategic waterway that carries around one-fifth of the world’s oil supply. The US said its strikes were carried out in response to the attacks, intensifying concerns over the security of one of the world’s most important energy corridors.
The renewed tensions have also prompted countries to draw down oil inventories to ease supply concerns. Meanwhile, industry data showed US crude stockpiles fell again last week, reinforcing expectations of a tightening market.
Investors are closely watching developments in the Middle East, with fears that further disruption to tanker traffic or additional sanctions could keep oil markets volatile and sustain upward pressure on crude prices in the days ahead.
