Oil prices jump by 2.63% as fresh US strikes on Iran shake up Strait of Hormuz again

Oil prices climbed sharply on Wednesday (Jul 8) after fresh US strikes on Iran reignited fears over the Strait of Hormuz, the vital, narrow waterway through which a huge share of global energy supplies moves. As markets opened, West Texas Intermediate, the US benchmark, rose 2.63 per cent to $72.29 a barrel. This followed a similar 2.76 per cent gain on Tuesday.

The price rise came after the US military said its forces launched strikes on Iran following attacks on three commercial vessels in the Strait of Hormuz. The renewed fighting has once again put the world’s most important oil chokepoint under pressure.

Explosions reported near key Iranian ports

Iranian state media reported multiple explosions in and around the strait. The reports said there were six blasts on Qeshm island, seven in the city of Sirik and more near Bandar Abbas, one of Iran’s biggest ports.

US Central Command said the strikes were meant to punish what it called Iranian attacks on commercial shipping and warned that such actions would carry high costs.

Iran, however, pushed back hard. Tehran's foreign ministry accused Washington of violating the memorandum of understanding between the two sides and warned that Tehran would respond.

"Iran is issuing a serious warning about the consequences of America's breach of the treaty, and will take decisive measures to protect its interests and national security," the ministry said in a statement carried by official media.

Shipping risk returns to the centre of the crisis

The latest attacks have brought back an old fear, disruption in the Strait of Hormuz.

That fear had eased in recent weeks after maritime traffic started moving again under a fragile US-Iran agreement. But the calm did not last long.

British maritime security agency UKMTO said an unknown projectile hit a tanker overnight, sparking a fire. Two more vessels were then struck, with at least one hit by a drone.

All three ships were attacked near Oman, where a temporary transit corridor along the coastline had been proposed. Iran has opposed that route, insisting on control over the narrow passage and the fees linked to it.

Qatar said one of the vessels was its LNG tanker Al-Rekayyat and blamed Iran for the attack. Doha later summoned Iran’s deputy ambassador and demanded an explanation.

"We hold Iran fully legally responsible for this attack and for any resulting damages or repercussions," Qatari foreign ministry spokesman Majed Al Ansari wrote on X. Iran rejected the accusation and said it was dismayed by Qatar’s remarks.