Oil prices rise as US strikes Iran, reversing slide to pre-war | Oil and Gas News

Brent crude rose above $ 76 a barrel for the first time in two weeks amid new violence in the Strait of Hormuz.

Oil prices have risen as tensions between the United States and Iran threaten to derail a ceasefire that has brought relief to energy markets around the world.

Brent crude, the world’s main benchmark, rose as much as 3 percent on Wednesday, reversing a slide that saw prices return to pre-war levels.

Brent futures for September were at $76.07 a barrel as of 04:00 GMT, the highest since June 23.

The jump came after the US launched a war against Iran and lifted a temporary embargo on Iranian oil, following an attack on three merchant ships in the Strait of Hormuz.

US, Qatari and Saudi officials blamed Iran for the attack on the ships.

The US Central Command said on X that it had begun “launching a powerful counter-terrorism operation against Iran to cost more against commercial vessels operated by innocent civilians on the world’s maritime routes”.

Tehran has not directly claimed responsibility for the attacks, but has repeatedly warned ships not to try to pass through channels it does not approve of.

Iran’s Deputy Foreign Minister Kazem Gharibabadi previously said that Tehran “will take measures to protect national interests and security” in response to the lifting of sanctions, saying that the move is a “clear violation” of the memorandum of understanding (MoU) signed by Washington and Tehran on June 17.

Tony Sycamore, senior market analyst at IG Australia, said the MoU’s language was deliberately vague about managing traffic and traffic issues.

The dispute between the U.S. and Iran over whether the channel is an international waterway or part of Iranian waters has not been resolved, Sycamore said.

“It will look like this morning’s US strike will end the recent escalation or Iran will decide to continue to change its course on the Strait and take action that fails to trigger a major conflict,” Sycamore said in a note to clients on Wednesday.

“At the very least, it will give the markets a sense of risk and show that oil prices are stable for now.”

The US strike follows another move by the US Treasury Department late Tuesday to lift its 60-day decision on Iran oil charges.

The Treasury Department last month agreed to sell Iranian oil until August 21 as part of broader talks with Tehran, but the deal will not be allowed again after 12:01am EDT (04:01 GMT) on July 17, according to a statement on the department’s website.

The new law also removes permission for any new transactions, including purchases or downloads, after Tuesday.

Saul Kavonic, head of energy research at MST Marquee, said he expects oil prices to remain high as dangerous conditions continue and emergency oil output slows.

“Iran wants to strengthen its control over the Strait of Hormuz in the coming weeks, which is not acceptable to the US, many Gulf countries and international customers, and could lead to a crisis that remains below 50 percent of pre-war levels for many months and a period of conflict,” Kavonic told Al Jazeera.