U.S. oil prices rose nearly 3 percent in early trading on Wednesday, extending gains from the previous session after the U.S. military launched a series of strikes against Iran, raising concerns over renewed instability in the Middle East.
U.S. Central Command said the strikes were carried out in response to Iranian attacks on three commercial vessels transiting the Strait of Hormuz on Tuesday.
As of 2215 GMT, U.S. West Texas Intermediate (WTI) crude futures had climbed US$1.95, or 2.8 percent, to US$72.39 per barrel.
WTI had already settled 2.8 percent higher on Tuesday before extending gains in after-hours trading following the U.S. decision to revoke the general licence that had authorized the sale of Iranian crude oil after the reported attacks on commercial shipping.
Qatar accused Iran of targeting the vessels, including the Qatari liquefied natural gas carrier Al Rekayyat, which reportedly caught fire in its engine room after being struck by a drone. All crew members were reported safe and were being evacuated.
Maritime security sources also reported that the Saudi-flagged crude oil tanker Wedyan sustained damage off the coast of Oman, although the cause had not been immediately confirmed.
The latest developments have renewed concerns over possible disruptions to shipping through the Strait of Hormuz, one of the world’s most important oil transit routes, contributing to the sharp rise in global oil prices.
Source: Reuters
