Brent crude futures rose by $5.93, or 8%, to $80.09 per barrel, its highest level since June 22 of last year, while US West Texas Intermediate crude rose by $5.25, or 7.5%, to $75.69 per barrel, also its highest level in more than two weeks, according to Reuters.
Trump said on Wednesday that the memorandum of understanding signed with Iran “has ended,” threatening to launch new strikes against Iranian targets.
The US military launched a new aggression on Iran today, resulting in the martyrdom of 8 members of the air and naval forces, according to the Iranian military, while Iran’s Islamic Revolutionary Guard Corps responded to this aggression by targeting American bases and interests in the region.
The escalation of hostilities revived concerns about the movement of oil tankers through the Strait of Hormuz, especially as some ships were struck near the strait earlier this week.
One-fifth of global oil supplies used to pass through the strait before the American-Zionist aggression on Iran, and the choking of traffic in the ensuing conflict pushed oil prices above $100 at the peak of the disruption.
Ole Hvalbye, an analyst at SEB Research, said: “In reality, the oil price is supposed to rise.”
Trump also repeated his threats on Wednesday that US forces might seize Iran’s Kharg Island, through which 90% of Iran’s crude oil exports are shipped.
Sol Cavonic, head of research at MST Marquee, said: “Trump’s confirmation that the memorandum of understanding has ended increases the likelihood of the strait being closed again as a new cycle of escalation begins.”
After the US and Iran signed a ceasefire agreement last month, oil prices fell to pre-war levels, and traders bet that prices would fall further.
Trading sources said on Wednesday that China had lifted restrictions on refined fuel exports for the rest of July and allowed a private refinery to resume shipments after a four-month halt.
