Global oil markets moved sharply higher on Wednesday as rises 2% became the dominant market trend following fresh military exchanges between the United States and Iran. Investors reacted to growing concerns that the fragile ceasefire could collapse and disrupt energy supplies from the Middle East.
Brent crude futures climbed by $1.92, or 2.6%, to reach $76.08 per barrel by 0400 GMT. US West Texas Intermediate (WTI) crude also gained $1.82, or 2.6%, trading at $72.26 per barrel.
The latest rises 2% in oil prices came after both countries carried out military strikes against each other. Market analysts said fears of supply disruptions encouraged investors to buy crude futures.
According to the Islamic Revolutionary Guard Corps (IRGC), missile and drone strikes were launched against US military installations in the region. The IRGC described the operation as a response to what it called recent US attacks on Iran.
In its statement issued on Wednesday, the IRGC said the first phase of the operation targeted 85 US military sites in Bahrain and Kuwait. The strikes were reportedly carried out using both missiles and drones.
The IRGC also accused Washington of violating a ceasefire and what it referred to as the “Islamabad understanding.” It alleged that US forces had launched airstrikes on several coastal facilities and civilian locations along Iran’s southern coastline.
According to the statement, the missile and drone operation targeted Port Salman, the US Fifth Naval Base in Bahrain and Kuwait’s Ali Salem Airbase. The IRGC also claimed it had shot down an MQ-9 drone during the operation.
Meanwhile, the US Central Command (CENTCOM) announced that it had completed a new round of offensive strikes against Iran on July 7. According to the US military, more than 80 targets were hit with precision-guided munitions.
CENTCOM said the strikes targeted Iranian air defence systems, command and control networks, coastal radar sites and anti-ship missile capabilities. More than 60 small boats belonging to the IRGC were also reportedly struck in and around the Strait of Hormuz.
The US military said the operation was conducted in response to Iran’s alleged attacks on commercial vessels travelling through the Strait of Hormuz. Officials stated that the strikes were intended to reduce Iran’s ability to threaten international shipping.
According to CENTCOM, Iran had recently targeted three commercial vessels passing through the strategic waterway. The vessels identified were the Marshall Islands-flagged M/T Al Rekayyat, the Saudi Arabia-flagged M/T Wedyan and the Liberian-flagged M/T Cyprus Prosperity.
Energy analysts said the latest rises 2% in crude prices reflects market concerns over the security of one of the world’s most important oil shipping routes. Any disruption in the Strait of Hormuz could affect global energy supplies and increase transportation costs.
Investors continue to monitor developments closely as tensions remain high. The rises 2% in oil prices highlights how geopolitical events in the Middle East can quickly influence global commodity markets and create uncertainty for energy-importing countries around the world.
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