SynopsisBrent crude futures climbed $1.62, or 2.16%, to $76 a barrel, while U.S. West Texas Intermediate crude gained $1.63, or 2.31%, to $72 a barrel. Both benchmarks had already advanced about 3% on Tuesday after the United States withdrew the general licence that had allowed the sale of Iranian crude following the vessel attacks.ETMarkets.comOil prices rose over 2% on Wednesday after the United States carried out airstrikes on Iran and reinstated sanctions on Iranian crude sales, reigniting concerns over the stability of the Middle East ceasefire and the risk of fresh supply disruptions.Crude oil price on July 8Brent crude futures climbed $1.62, or 2.16%, to $76 a barrel, while U.S. West Texas Intermediate crude gained $1.63, or 2.31%, to $72 a barrel. Both benchmarks had already advanced about 3% on Tuesday after the United States withdrew the general licence that had allowed the sale of Iranian crude following the vessel attacks.“U.S. Central Command forces have begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway,” CENTCOM said in a post to X. According to the U.S. Central Command, the strikes were launched in response to Iranian attacks on three commercial vessels passing through the Strait of Hormuz. The waterway is a critical route for transporting crude oil from the Middle East to global markets.Analysts said the latest escalation has reminded markets that shipping through the Strait of Hormuz remains vulnerable. The renewed tensions have also challenged the prevailing expectation that global oil markets were heading into oversupply, prompting traders with large short positions to reassess their bets.Also read: Iran promises a 'decisive' answer to US strikesIran did not claim responsibility for the attacks on the vessels. However, Qatar blamed Iran for the incidents, including an attack on a Qatari liquefied natural gas tanker that was struck by a drone, triggering a fire in its engine room. A Saudi-flagged crude oil tanker, believed to be the supertanker Wedyan, was also reported damaged off the coast of Oman, although maritime security sources said the cause was not immediately known.The incidents have once again raised concerns over shipping through the Strait of Hormuz, which handled cargoes equivalent to about one-fifth of global energy supply before the war began in February.Oil prices had retreated to pre-war levels after the United States and Iran reached a truce last month. The decline encouraged traders to build sizeable short positions in oil futures on expectations that delayed Middle East supplies would soon return to the market.Where are prices headed?Industry experts said normal operations in the strait are unlikely to resume quickly. They noted that restoring regular traffic would require coordinated vessel movements, restarting oil wells, repairing damaged infrastructure and agreements on de-mining operations. Several shipowners also continue to remain cautious about resuming operations in the Strait of Hormuz and the broader Persian Gulf.Analysts also said global oil inventories were drawn down during the prolonged disruption to shipping through the strait and will take time to rebuild. They expect inventories to remain under pressure until additional crude supplies from the Gulf begin reaching international markets.Read more: US strikes Iran & blocks oil sales in new threats to ceasefireLast month, Saudi Aramco Chief Executive Officer Amin Nasser had warned that any prolonged disruption in the Strait of Hormuz could delay the return of stability in global oil markets until 2027. According to him, an extended disruption could affect nearly 100 million barrels of oil supply every week. Saudi Aramco is the world's largest oil producer.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. 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Oil Price Today (July 8): Crude oil tops 5% in two days as ‘powerful’ US strikes on Iran revive supply fears. What’s unfolding?
Brent crude futures climbed $1.62, or 2.16%, to $76 a barrel, while U.S. West Texas Intermediate crude gained $1.63, or 2.31%, to $72 a barrel. Both benchmarks had already advanced about 3% on Tuesday after the United States withdrew the general licence that had allowed the sale of Iranian crude following the vessel attacks.
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