US Retaliates Against Iran with Airstrikes and Sanctions, Oil Prices Surge Further
- US strikes Iran (>80 targets) after ship attacks.
- Oil prices surge: WTI near $74.30, Brent >$76.
- Trump ends Iran MoU, revokes sanctions waiver.
Reports emerged late Monday of Iran firing at least two missiles at commercial ships transiting the Strait of Hormuz, a vital waterway for approximately 20% of global oil supply. Multiple sources, including Bloomberg and Axios citing US officials, confirmed that two to three commercial vessels sustained significant damage, though no casualties were reported. The UK Maritime Trade Operations (UKMTO) also noted a tanker being hit by an unknown projectile, causing a fire. These incidents have reignited concerns over supply disruptions and the stability of the interim US-Iran peace agreement. In response, West Texas Intermediate (WTI) crude oil prices surged on Tuesday, climbing over 2.6% to trade around $70.44 per barrel, while Brent crude also rose to near $73 a barrel.
The US military has launched **airstrikes against Iran** in retaliation for recent attacks on commercial shipping in the Strait of Hormuz. This escalation has further boosted crude oil prices, with West Texas Intermediate (WTI) advancing after gaining **nearly 5%** in the previous day, now trading around **$72.20 per barrel** during Asian hours on Wednesday. The US also **revoked a key sanctions waiver** that had allowed Iran to sell oil internationally. The Iranian attacks included targeting a **Qatari LNG carrier** and a **Saudi oil tanker**.
New reports indicate that US forces completed strikes on **more than 80 targets** in Iran. This comes as **Brent crude oil** prices surged as much as **3% to top $76 a barrel**. Amidst the military escalation, **US Vice President JD Vance** has arrived in **Switzerland** for high-level talks with an Iranian delegation, aiming to clarify terms for ending the conflict.
West Texas Intermediate (WTI) futures advanced further, gaining **3.2% to trade near $74.30 per barrel**, reaching its **highest level in two weeks**. This surge follows confirmation from US President **Donald Trump** that the **memorandum of understanding (MoU) with Iran**, intended to end the conflict, **is now over**. President Trump made this announcement during the **NATO summit in Ankara, Türkiye**.
New reports indicate that **Brent, WTI, and Middle Eastern oil benchmarks** have jumped **around 5%** amid renewed volatility. West Texas Intermediate (WTI) is currently trading around **$73.10 per barrel**, up **1.48%** on the day. Amidst these developments, President Trump has further stated that he **no longer wants to negotiate with Iran** following the termination of the memorandum of understanding. Market analysis from BNY suggests that **inflation expectations remain intact** and **core energy and inflation hedges are in place**, which is **limiting broader market disruption** for now.