Oil prices rise above $74 after US strikes Iran

Global oil prices surged this week following a renewed escalation of hostilities between the United States and Iran, reviving fears over the security of the world's most critical oil transit route. The price of West Texas Intermediate crude jumped from approximately $68 to over $74 per barrel, while Brent crude rose above $78. The spike came after a fragile ceasefire collapsed, triggering a series of attacks on commercial vessels near the Strait of Hormuz and retaliatory U.S. airstrikes.

The immediate catalyst was a spate of incidents targeting tankers in the vital waterway. Reports indicate three ships were attacked, including a Qatari liquefied natural gas carrier and a Saudi-flagged crude oil tanker. In response, U.S. forces launched strikes against dozens of targets in Iran. The U.S. Treasury also revoked a sanctions waiver that had allowed Iran to sell oil, reversing a key element of a recent interim agreement. Iranian officials stated they would respond to the U.S. action.

The Strait of Hormuz is a linchpin of global energy markets, with nearly one-fifth of the world's oil passing through it. Analysts warned that the attacks and reprisals could deter shipowners and...