Global oil prices climbed by more than five percent on Wednesday after US President Donald Trump declared that the ceasefire with Iran had ended, fueling renewed concerns over escalating tensions in the Middle East.
International benchmark Brent North Sea crude rose 5.3 percent to $78.09 per barrel, while US benchmark West Texas Intermediate (WTI) gained 5.4 percent to trade at $74.23 per barrel.
The sharp increase followed fresh US military strikes on Iran after attacks on commercial vessels in the Strait of Hormuz, prompting retaliatory strikes by Iran against American military installations across the Gulf.
The renewed conflict has heightened fears over the future of diplomatic efforts aimed at ending hostilities and restoring unrestricted access to the strategic Strait of Hormuz, one of the world’s most important oil shipping routes.
The latest escalation also weighed on Asian financial markets, where investor sentiment remained cautious. South Korea’s stock market experienced another technology-led sell-off as concerns persisted over high valuations in the artificial intelligence sector and uncertainty about when companies would begin generating significant returns.
US and Iranian forces reported carrying out multiple strikes on each other’s positions, further straining an interim agreement designed to reduce hostilities. Washington also revoked a temporary sanctions waiver that had allowed limited Iranian oil activities.
According to the US military, the latest strikes targeted Iranian military sites in retaliation for Tehran’s alleged attacks on three commercial ships transiting the Strait of Hormuz.
Iranian state media reported multiple explosions near the strategic waterway, while the Islamic Revolutionary Guard Corps claimed responsibility for attacks on several US military facilities in Bahrain and Kuwait.
The three commercial vessels were reportedly struck near Oman, which had proposed a temporary shipping corridor along its coastline. Tehran opposed the proposal, insisting on imposing fees for vessels using the strait.
Iran’s Foreign Ministry accused the United States of repeatedly violating a memorandum of understanding previously agreed upon by both countries.
Both major crude oil benchmarks extended their gains after rising more than two percent on Tuesday, pushing prices to their highest levels in two weeks.
Andreas Krieg, a security expert at King’s College London, said Iran remains committed to its demand that ships pay fees to transit the Strait of Hormuz, a position the United States has rejected.
“We are now in a sensitive period where potential alternatives to an Iranian toll or fee system are being explored,” he told AFP.
“Iran is sending a clear signal that no alternative will be accepted.”
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