Oil prices gained more than 2 per cent on Wednesday after the US military launched airstrikes against Iran and reimposed crude sales sanctions, raising fears their fragile truce was unravelling and Middle East supplies could be disrupted again.
Brent crude futures gained $1.92, or 2.6pc, at $76.08 a barrel at 0400 GMT. US West Texas Intermediate crude climbed $1.82, or 2.6pc, to $72.26 a barrel.
Both benchmarks rose about 3pc on Tuesday after the US revoked the general licence authorising the sale of Iranian crude following the Iranian attacks.
“While the revocation doesn’t fundamentally change oil market dynamics, it’s important from a sentiment perspective. It heightens the risk of a breakdown in the temporary deal between the US and Iran,” ING commodity strategists said on Wednesday.
The US airstrikes were in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz, US Central Command said on Tuesday.
