• Brent crude oil prices surged as much as 6% following US military strikes in Iran.
• The US revoked a waiver allowing Iranian oil sales, escalating tensions in the Strait of Hormuz.
• Market analysts predict continued volatility in oil prices as hostilities persist.

Oil prices have surged significantly after the United States launched military strikes against Iran, responding to recent attacks on commercial vessels in the Strait of Hormuz. Brent crude rose above $76 a barrel, marking its highest level in two weeks, while West Texas Intermediate (WTI) crude also saw a sharp increase, trading significantly higher than prior levels reported before escalating hostilities, according to Al Jazeera and India Times.

The rise in prices comes after the US Central Command confirmed that it struck over 80 targets in Iran, aiming to “degrade Iran’s ability to continue attacking international commerce.” This military action was viewed as a response to threats against international shipping routes and abruptly ended the tentative ceasefire that had temporarily alleviated market fears. As a result, Brent crude saw increases of 3% to 6% within hours, according to New York Times and Al Jazeera.

Additionally, the US Treasury Department's decision to revoke a waiver that allowed Iranian oil sales ahead of impending sanctions, which had previously been tentatively authorized until August 21, further fueled market anxiety. Market analysts suggest that oil prices are expected to remain elevated as long as uncertainty regarding shipping through the Strait of Hormuz persists, with jeopardized supply chains potentially keeping prices volatile, according to New York Times and India Times.

Industry experts emphasize the significance of the Strait of Hormuz as a crucial conduit for global energy supply, and the recent events underscore the risks of further escalations impacting transport and trade volumes. Analysts predict, "Ultimately, this situation could prevent shipping traffic from recovering to pre-war levels for the foreseeable future," as tensions contribute to market instability, according to Al Jazeera.