Key facts
- Brent crude surpassed $76 a barrel, reaching its highest level in two weeks.
- The US launched strikes against Iran in response to attacks on commercial vessels.
- The US revoked a waiver on sanctions against Iranian oil exports.
- Tensions in the Strait of Hormuz threaten to disrupt global energy markets.
- Analysts expect oil prices to remain elevated due to persistent hazardous conditions.
Oil prices surged past $76 a barrel for Brent crude, the highest in two weeks, as renewed hostilities between the United States and Iran escalated in the Strait of Hormuz. The US launched strikes against Iran and revoked a temporary waiver of sanctions on Iranian oil, following attacks on three commercial vessels in the waterway. US Central Command stated the strikes were to impose heavy costs for targeting commercial shipping. Tehran has not claimed responsibility but had warned vessels against transiting unapproved routes. Iranian Deputy Foreign Minister Kazem Gharibabadi described the revocation of the sanctions waiver as a "blatant violation." Analysts suggest the ongoing dispute over control of the strait and the revocation of waivers will keep oil prices elevated, with potential for passage through the strait to remain below pre-war levels for months.
