Oil prices jump as US strikes Iran hit Hormuz shipping

Oil rises after fresh US strikes on Iran

Oil prices jumped in post-settlement trade on Wednesday after the US military began launching fresh strikes on Iran, according to Reuters. Both major crude benchmarks had already settled at their highest levels in more than two weeks earlier in the session. The rally followed comments from US President Donald Trump, who threatened fresh strikes against Iran as soon as Wednesday night. The new moves reignited concerns that conflict could further disrupt shipping through the Strait of Hormuz, a key chokepoint for global energy flows. Market pricing reflected both immediate risk to physical shipments and the possibility of additional policy actions targeting Iranian exports.

Where Brent and WTI traded after the settlement

Brent crude futures last traded at $19.28 a barrel after settling up more than 5% at $18.02 to end Wednesday’s session, Reuters reported. US West Texas Intermediate (WTI) crude futures were trading at $14.76 a barrel, up from the session’s settlement level of $13.52. In another pricing snapshot cited in the provided material, Brent futures for September were at $16.48 a barrel as of 06:30 GMT, the highest since June 23. The various prices reflect fast-moving intraday volatility across different contract months and timestamps, as traders reacted to headlines around military action and shipping interruptions.

US Central Command’s stated objective: keep Hormuz open

The US military’s Central Command said on Wednesday it was launching fresh strikes on Iran aimed at keeping the Strait of Hormuz open to traffic, according to Reuters. A US official told Reuters that ongoing US strikes against Iran were expected to be bigger than attacks carried out on Tuesday. In separate reporting included in the prompt, US Central Command said it began “launching a series of powerful strikes against Iran” to impose costs for targeting and attacking commercial shipping in an international waterway. The official messaging framed the strikes around protecting maritime transit rather than broader escalation, but the market response showed traders were focused on how quickly flows could deteriorate.

What triggered the latest escalation around commercial shipping

The renewed moves came after Iranian attacks on three vessels in and near the Strait of Hormuz on Tuesday, according to the information provided. A separate account said the earlier Iranian strikes were on tankers trying to transit the strait via a route Iran had warned ships against using. Iran did not claim responsibility for any of the attacks in the material, though it was also reported that Iranian state TV said at least one vessel ignored warnings from Iranian forces. The uncertainty around attribution and the immediate impact on traffic added to the risk premium embedded in crude prices.

Reported scope of the strikes and the targets cited

One account said the US military began a series of air strikes inside Iran on Tuesday night that struck more than 80 targets overnight, including military installations and vessels used by Iran’s Revolutionary Guard Corps, citing US Central Command. Another summary said Central Command described targets such as air defenses, radar sites and anti-ship missile sites, and “dozens of small boats” used by Iran’s Revolutionary Guard. These details were presented as operational aims connected to maritime security. Even so, traders treated the broadening target set as a sign of a prolonged episode rather than a one-off response.

Trump’s comments and the status of the US-Iran memorandum

Oil moved sharply after Trump said the US-Iran memorandum of understanding was “over” and described dealing with Tehran as a “waste of time,” according to the material provided. Trump made the comments in Ankara, where he was participating in a NATO summit. He also said the US may reimplement its naval blockade of the Strait of Hormuz and that the White House was revisiting the idea of forcibly seizing Kharg Island, described as Iran’s primary crude oil export terminal. These statements added a policy-driven risk layer on top of the military developments, because they directly referenced actions that could restrict Iranian exports or constrain physical movement through the waterway.

Shipping flows and vessel crossings: the immediate supply signal

A key driver for oil’s jump was evidence of disrupted flows through Hormuz. The material said 15 million barrels of oil crossed through the Strait of Hormuz on Monday, then dropped to roughly 6 million barrels on Tuesday, before falling further to near zero on Wednesday. Vessel crossings also fell from around 20 on Monday to 11 on Tuesday, before completely halting on Wednesday, per Rystad data cited in the prompt. These figures signaled immediate tightness risk in an already constrained market, as traders priced the possibility that disruptions could persist.

Sanctions waiver reversal adds pressure to Iranian supply

Alongside the military escalation, the US Department of the Treasury revoked a temporary waiver of sanctions on Iranian oil, according to the material provided. The waiver had previously authorised the sale of Iranian oil until August 21, but transactions would no longer be allowed after 12:01am EDT (04:01 GMT) on July 17, according to a statement referenced in the prompt. The new order also rescinded authorisation for any new transactions, including purchases or loading, after Tuesday. The combination of shipping disruption risk and a tighter sanctions posture amplified concerns around barrels that could be removed from the market.

Key numbers at a glance

Market impact: what moved prices and why it matters

The immediate market impact was a sharp repricing of geopolitical risk tied to physical supply routes. Brent and WTI both pushed to two-week highs in the reporting, with intraday moves described as roughly 8% in one account and more than 5% in another, depending on the timestamp and contract month referenced. The steep fall in tanker flows and crossings through Hormuz provided a concrete catalyst for the rally. At the same time, the US decision to revoke the sanctions waiver introduced a separate mechanism that could restrict Iranian oil and petrochemical sales. Together, these developments raised the probability of tighter near-term balances, which tends to show up first in prompt futures pricing.

Conclusion

Oil prices strengthened as renewed US strikes on Iran, combined with a sharp fall in Strait of Hormuz traffic, pushed traders to price in higher near-term supply risk. Alongside the military actions, the US move to end the sanctions waiver by July 17 added another constraint on Iranian barrels. The next clear markers for markets will be updates from US Central Command on the scope of operations, and evidence from shipping data on whether crossings and flows through Hormuz resume.