Oil prices rise after US attacks Iran and tightens sanctions on Iranian oil

Oil prices climbed on Wednesday after the United States launched strikes on Iran, raising fresh concerns over global energy supplies and reversing a recent fall that had returned prices to pre-war levels.

Brent crude, the international benchmark, rose by as much as three percent, with September futures reaching $76.07 a barrel by 04:00 GMT, their highest level since June 23.

The increase followed US military strikes on Iran and Washington's decision to revoke a temporary sanctions waiver on Iranian oil.

The moves came after attacks on three commercial vessels in the Strait of Hormuz, which US, Qatari and Saudi officials blamed on Iran.

According to Al Jazeera, US Central Command said 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”.

Iranian Deputy Foreign Minister Kazem Gharibabadi criticised the sanctions decision, calling it a “blatant violation” of the memorandum of understanding signed between Tehran and Washington in June.

Analysts warned that uncertainty over the Strait of Hormuz could continue to support higher oil prices.

Speaking to Al Jazeera, IG Australia market analyst Tony Sycamore said: “It remains to be seen whether this morning’s US strikes bring a swift end to the latest escalation or Iran elects to continue flexing its leverage over the Strait with actions that fall short of triggering a broader conflict.”