Oil prices rose by more than 3% following new attacks by the U.S. and Iran
Global oil prices continued to rise amid renewed tensions between the U.S. and Iran. Investors fear a breakdown in the truce between the two countries and potential disruptions to energy supplies through the Strait of Hormuz.
As of the morning of July 8, Brent crude futures rose 3.2% to $76.56 per barrel. WTI crude also rose 3.2% to $72.70 per barrel.
The price increase was triggered by tit-for-tat strikes between the U.S. and Iran, as well as Washington’s decision to reinstate sanctions against the sale of Iranian oil. According to analysts, this has heightened the risk of a breakdown in the temporary ceasefire between the two countries.
“The current escalation reminds the market just how vulnerable shipping through the Strait of Hormuz still is,” said Sol Kavonik, head of the analytical division at MST Marquee.
Further escalation could shift market expectations regarding the supply surplus. If tensions persist and shipping through the Strait of Hormuz remains below half of its pre-war level, this could limit supply and support rising oil prices.
After the ceasefire between the U.S. and Iran last month, oil prices returned to pre-war levels, and traders began actively betting on further declines in oil prices, anticipating increased supplies from the Middle East.
This was reported by Reuters.
As a reminder, oil prices could drop significantly by the end of 2025.
Rutte called the U.S. strikes on Iran absolutely necessary
