Brent, WTI rise as U.S. targets Iran
Oil tankers and cargo ships are anchored off Sultan Qaboos Port in Muscat, Oman, on June 21, 2026. The Strait of Hormuz, a vital shipping route for the region’s oil and gas, has been effectively blockaded since the outbreak of war between the United States and Iran in late February. On Sunday, US Vice President JD Vance arrived in Switzerland for high-level talks with the Iranian delegation; Both sides are trying to clarify the terms for ending the war.
Elke Scholiers | Getty Images News | Getty Images
Oil prices rose on Wednesday after the United States launched a new attack on Iran in retaliation for Tehran’s attack on commercial ships in the Strait of Hormuz.
West Texas Intermediate Futures contracts for August delivery rose 2.87% to $72.46 per barrel. Futures for international comparison Brent Crude oil for September delivery rose 2.75% to $76.18 per barrel.
The US military said it had launched “a series of powerful attacks” against Iran after three commercial ships passing through the Strait of Hormuz were attacked on Tuesday, warning that Tehran would face “heavy costs” for targeting commercial ships.
US Central Command said, “The attacks were carried out in response to Iran’s attacks on three commercial ships passing through the Strait of Hormuz. The aggression shown by Iran is unwarranted, dangerous and a clear violation of the ceasefire.” he said. In a post on X.
The latest exchange threatens to test a fragile ceasefire reached last month that reopened the critical Strait of Hormuz to commercial shipping after months of disruption.
Signaling that things are getting worse, the US Treasury Department on Tuesday withdrew the exemption that allowed Iran to sell its oil.
“Iran will only benefit if it behaves well,” a US official, speaking on condition of anonymity to discuss private conversations, told CNBC. “Iran’s actions in the Bosphorus are completely unacceptable to the United States and will be met with consequences.”
Three ships were attacked in or near the Strait of Hormuz on Tuesday, according to the US-led Joint Maritime Information Centre. The center raised the threat assessment against ships passing through the waterway to “severe” level, warning that Iran could take further hostile actions.
“While yesterday’s attacks coincided with ongoing state funerals for Ali Khamenei, it is not in Iran’s interest to reach a deal given their increasing influence over Trump as November approaches,” said Ortus Advisors strategist Andrew Jackson.
US midterm elections will be held in November, and inflation caused by conflicts in the Middle East is likely to increase political risks for the Trump administration.
“The corresponding rise in oil and yields and the possibility that the Fed may have to take a more hawkish stance on whether inflation is here to stay,” he said in an email. The 10-year Treasury yield was up 2 basis points at 4.549%.
— CNBC’s Spencer Kimball and Megan Cassella contributed to this report.
