Oil prices experienced a significant jump in early Asian trading on Wednesday, July 8, 2026, with Brent crude rising over 3% to $74.16 a barrel and West Texas Intermediate (WTI) increasing by close to 3% to $72.43 a barrel. This surge followed reports of US military strikes against Iranian targets, including air defense systems, coastal surveillance, anti-ship, and drone launch sites, in retaliation for recent attacks on commercial vessels in the Strait of Hormuz. These developments escalated fears that the conflict could disrupt shipping through the vital strait, which accounts for roughly one-fifth of the world's oil supply.
The US Treasury simultaneously revoked a sanctions waiver that had previously allowed Iran to sell oil, reversing a key aspect of an interim peace deal agreed upon in June. This move further intensified concerns about tightening global oil supplies, as Iran was prevented from openly selling crude on the international market. The attacks in the Strait of Hormuz, including a gas carrier and a Saudi oil tanker, marked the largest volume of incidents since the interim agreement came into effect, prompting strong US and Iranian responses. Iran subsequently retaliated with strikes targeting Bahrain and Kuwait.
Financial analysts, such as Carolyn Kissane from New York University, suggested that oil's gains might be temporary unless further attacks occur. However, others like Saul Kavonic from MST Marquee noted that the flare-up reminds the market of the Strait's fragility, potentially leading traders to cover short positions. The US action was intended to signal that Iran cannot act with impunity, though some characterized the situation as a "ceasefire that's not really a ceasefire." The US Central Command stated its forces launched "powerful strikes" to impose heavy costs for attacks on international shipping.
