New Delhi: Crude oil prices rose more than 2 percent on Wednesday after American forces carried out airstrikes on Iran and reinstated sanctions on its oil exports. The moves revived concerns that a recent fragile ceasefire could collapse and disrupt supplies from the Middle East.
Brent crude futures increased $1.92, or 2.6 percent, to $76.08 a barrel at 0400 GMT. West Texas Intermediate crude gained $1.82, or 2.6 percent, reaching $72.26 a barrel.
Both benchmarks had already advanced nearly 3 percent on Tuesday after Washington withdrew the general licence that had allowed Iranian crude sales following earlier Iranian strikes.
Analysts at ING noted that while the licence revocation does not alter market fundamentals, it raises the chance of the temporary US-Iran agreement breaking down.
The US strikes responded to Iranian attacks on three commercial ships passing through the Strait of Hormuz, according to US Central Command.
Market observers highlighted that the incidents underscore ongoing risks to shipping in the vital waterway. They added that sustained tensions and reduced traffic could tighten supplies and lift prices, countering expectations of oversupply.
After the truce was reached last month, oil prices fell back to pre-conflict levels and traders built large short positions.
Iran denied involvement in the vessel attacks, but Qatar attributed them to Iran, including a strike on a Qatari liquefied natural gas tanker. A Saudi-flagged crude carrier was also damaged near Oman.
The events renewed worries about tanker traffic through the Strait of Hormuz, which handled about one-fifth of global energy supplies before the war began in February.
Iran has directed ships to a route nearer its coast, while the United States maintains the waterway must stay open to all traffic. Countries have drawn down stockpiles to offset earlier shortfalls.
