Crude Oil Prices Surge Above $76 as US Strikes Iran Raise Fresh Supply Concerns

8 Jul 2026 , 03:01 PM

Oil prices surged on Wednesday as renewed tensions between the United States and Iran threatened to disrupt global energy markets and derail a fragile ceasefire that had recently helped ease supply concerns.

The international benchmark Brent crude rose more than 3%, climbing above $76 per barrel for the first time in two weeks. The sharp recovery reversed a recent decline that had pushed oil prices back toward levels seen before the conflict-related spike.

Brent Crude Rises as Geopolitical Risks Return

Brent crude futures for September delivery traded at $76.48 a barrel as of 06:30 GMT, marking their highest level since June 23.

The rally came after investors reassessed the risks to global oil supplies following renewed hostilities involving the US and Iran, particularly around the Strait of Hormuz.

The waterway remains a key focus for energy markets as any prolonged disruption could affect global crude shipments and put upward pressure on oil prices.

US Strikes on Iran Trigger Market Reaction

Oil markets reacted after the United States launched strikes against Iran following attacks on three commercial vessels in the Strait of Hormuz.

The US, Qatar and Saudi Arabia blamed Iran for the attacks, while Tehran has not directly accepted responsibility.

However, Iran has repeatedly warned vessels against travelling through routes in the Strait of Hormuz that it has not approved.

The latest escalation raised concerns that tensions could intensify and affect one of the world’s most important oil transit routes.

US Central Command Announces Military Action

The US Central Command announced that it had started a series of strikes against Iran, stating that the action was in response to attacks on commercial shipping vessels carrying civilian crews in international waters.

The move added uncertainty to global markets, with investors closely monitoring whether the escalation would remain limited or develop into a broader conflict.

Iran Warns of Further Action

Iranian Deputy Foreign Minister Kazem Gharibabadi said Tehran would take “decisive actions” to protect its interests and security.

Iran also criticised the US decision to revoke a temporary waiver related to Iranian oil transactions, calling the move a violation of the memorandum of understanding signed between Washington and Tehran on June 17.

US Revokes Iranian Oil Sanctions Waiver

The US Department of the Treasury separately announced the cancellation of a temporary waiver that had allowed certain Iranian oil transactions.

The waiver had previously permitted Iranian oil sales until August 21 as part of broader negotiations.

Under the revised order:

• Iranian oil transactions will no longer be permitted after 12:01 a.m. EDT on July 17.
• New purchases and oil-loading activities are also restricted.

The move could further tighten global oil supply conditions if Iranian exports decline significantly.

Strait of Hormuz Becomes Centre of Market Concerns

The Strait of Hormuz remains one of the most important energy routes globally, with disruptions having the potential to affect crude availability and shipping costs.

Analysts warned that prolonged instability in the region could keep oil prices elevated.

According to energy analysts, reduced shipping activity through the strait could significantly impact global supply chains and increase market volatility.

Asian Markets React to Rising Uncertainty

The latest geopolitical developments also affected broader financial markets.

Asian stock markets traded mixed on Wednesday:

• Tokyo and Seoul markets witnessed sharp declines.
• Taipei and Hong Kong markets recorded gains.

Investors remained cautious as they assessed the impact of higher oil prices and renewed geopolitical risks on economic growth and inflation.

Analysts Expect Oil Prices to Remain Elevated

Market experts believe crude prices could remain supported as long as uncertainty around the Strait of Hormuz continues.

Analyst expect oil prices may stay elevated due to:

• Ongoing security concerns in the region.
• Reduced shipping activity.
• The gradual winding down of emergency oil stockpile releases.

Analysts also said that markets are watching whether the latest US strikes lead to a quick resolution or trigger further escalation.