08.07.202613:46:10UTC+00Oil Jumps as US-Iran Tensions Escalate

Crude oil prices jumped 5% to $74 a barrel on Wednesday as escalating tensions in the Middle East heightened fears of further supply disruptions. President Trump declared that, as far as he is concerned, the ceasefire is over and threatened additional strikes on Iran later tonight. This followed yesterday’s move by the US to revoke a waiver that had allowed Iran to sell crude, after attacks on vessels transiting the Strait of Hormuz.

Tehran, for its part, said it had targeted 85 US military sites in Bahrain and Kuwait in response to what it called US violations of the ceasefire. The renewed hostilities have raised the risk of fresh disruptions to global energy supplies, as shipowners and regional producers may be deterred from using this critical maritime route.

The escalation represents a sharp reversal from earlier expectations of a supply glut, which had emerged after OPEC+ raised production quotas and Middle Eastern producers began ramping up output.