Oil prices surge as US military action and sanctions escalate tensions, threatening supply routes in the Strait of Hormuz.
West Texas Intermediate crude climbed to $72.20 per barrel in Asian trading after the US conducted airstrikes on Iran and canceled a sanctions waiver, disrupting oil exports. The move follows Iranian attacks on commercial vessels, including a Qatari LNG carrier and Saudi oil tanker, in the Strait of Hormuz.
The escalation reverses earlier expectations of a supply glut, as OPEC+ had recently increased production quotas and Middle Eastern producers planned output hikes. Market forecasts had anticipated stable or lower prices before the renewed conflict.
Traders now assess risks of broader supply disruptions, with shipowners and regional producers avoiding the critical waterway amid heightened instability.