Overview
- Brent crude climbed about 2.6% to $76.09 a barrel in early trading on Wednesday after reports of U.S. strikes on targets in Iran.
- The move left Brent roughly 8.5% higher than last week’s interim low after the price had fallen to about $70 in early July.
- Earlier in the week, attacks on tankers in the Strait of Hormuz had already pushed Brent up about 3%, prompting immediate market concern.
- Traders say the Strait of Hormuz is a key choke point for global oil flows, so attacks there or state-on-state escalation raise the premium buyers pay for secure supply.
- Policy shifts and actions tied to the strikes, including renewed U.S. oil sanctions and the reversal of a prior exemption, could tighten flows and are the main things to watch next for further price moves.