Global oil prices rose by more than 3% on Wednesday following a new escalation of the conflict between the US and Iran. Investors are concerned about supply disruptions through the Strait of Hormuz — one of the key routes for global oil trade.
On Wednesday morning, the price of Brent crude oil rose by 3.2%, reaching $76.54 per barrel. American WTI crude also gained 3.2% and was trading at $72.72 per barrel.
The increase in prices followed the US strikes on military facilities in Iran, stating that the operation was a response to attacks on three commercial tankers in the Strait of Hormuz.
Shortly before this, Washington also reinstated sanctions on Iranian oil trade that had been temporarily lifted under a June ceasefire agreement and the resumption of shipping through the Strait of Hormuz.
The Strait of Hormuz is considered one of the most important maritime routes for oil exports. Any military actions in this area traditionally raise concerns in the markets and affect global energy prices.
In recent weeks, oil prices have returned to levels similar to those observed before the previous escalation between the US, Israel, and Iran. However, the new strikes have once again heightened market participants' concerns.
After the March escalation of the conflict, oil prices nearly reached $120 per barrel. While the current rise remains significantly more moderate, further dynamics will depend on the developments in the Middle East.
Following the American operation, Iran retaliated with strikes on facilities in Bahrain and Kuwait, which increased concerns about the potential further expansion of the conflict.
If tensions persist or shipping through the Strait of Hormuz is threatened again, fluctuations in oil prices may continue. This, in turn, could impact fuel and transportation costs in many countries.
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