Brent crude oil prices rose above $76 a barrel for the first time in two weeks following renewed violence in the Strait of Hormuz, a critical global shipping route. The surge comes amid escalating hostilities between the United States and Iran, which threaten to undermine a fragile ceasefire that had provided some relief to global energy markets.

On July 8, US Central Command announced on X that it had 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." These US strikes occurred despite a promised pause for the funeral of Iran's Supreme Leader, Ali Khamenei.

Iranian Deputy Foreign Minister Kazem Gharibabadi responded by stating that Tehran would take "decisive actions to safeguard its national interests and security" in reaction to the revocation of a sanctions waiver. He described the US move as a "blatant violation" of the memorandum of understanding signed by Washington and Tehran on June 17.

Brent crude, the main international benchmark, rose as much as 3 percent on Wednesday, reversing a recent slide that had brought prices back to pre-war levels. Analysts remain uncertain whether the US strikes will quickly end the escalation or if Iran will continue to exert influence over the Strait of Hormuz without triggering a broader conflict.

The US Treasury Department had authorized the sale of Iranian oil until August 21 as part of ongoing negotiations, but announced that transactions would no longer be permitted after 12:01am EDT (04:01 GMT) on July 17.

This development adds to global concerns about energy supply stability amid geopolitical tensions in the Middle East.

Sources