TOKYO, July 8 - U.S. benchmark oil prices rose sharply in early trade on Wednesday, building on gains from the previous session after the U.S. military conducted a series of strikes against Iran. Market participants reacted to the strikes as signals the tenuous truce in the region may be breaking down.
As of 2215 GMT, U.S. West Texas Intermediate crude was trading up $1.95, or 2.8%, at $72.39 a barrel. The move extended a 2.8% settlement gain recorded on Tuesday, with additional buying occurring in post-settlement trade following a decision by the U.S. to revoke the general licence that had authorised the sale of Iranian crude. That revocation followed reported Iranian attacks on three commercial vessels transiting the Strait of Hormuz, according to U.S. Central Command.
Authorities and maritime sources described multiple incidents. Qatar attributed attacks to Iran that struck three vessels, among them the large Qatari liquefied natural gas tanker Al Rekayyat, which reported being hit by a drone. The strike on Al Rekayyat reportedly caused a fire in its engine room. Reports noted the crew were safe and were being evacuated.
In a separate incident, a Saudi-flagged crude oil tanker believed to be the supertanker Wedyan sustained damage off the coast of Oman, maritime security sources said. The cause of that damage was not immediately clear. Together, these developments have revived concerns about possible interruptions to tanker movements through the Strait of Hormuz, a critical shipping chokepoint for global energy flows.
The sequence of events - attacks on commercial vessels, a revocation of Iranian crude export permissions, and subsequent U.S. military action - has coincided with renewed volatility in oil markets. Traders responded to both the physical incidents and related policy changes, pushing WTI higher in early trading. The reporting on the attacks, the damage to vessels and the evacuation of crew added to market unease about supply chain risks in the region.
Information on the incidents came from U.S. Central Command, Qatari statements and maritime security sources. Details about the precise causes of the damage to the Saudi-flagged tanker remained unclear at the time of reporting. The combination of hostilities, vessel damage and changes to export authorisations has reignited market attention on the security of tanker routes through the Strait of Hormuz.