Brent, WTI rise as U.S. targets Iran

Oil prices rose Wednesday after the U.S. launched fresh strikes on Iran in retaliation for Tehran attacking commercial vessels in the Strait of Hormuz.

West Texas Intermediate futures for August delivery rose 2.87% to $72.46 per barrel. Futures for International benchmark Brent crude for September delivery jumped 2.75% to $76.18 per barrel.

The U.S. military said it had begun a “series of powerful strikes” against Iran after three commercial vessels transiting the Strait of Hormuz came under attack on Tuesday, warning Tehran would face “heavy costs” for targeting commercial shipping.

“The U.S. strikes are in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz. Iran’s demonstrated aggression was unwarranted, dangerous, and a clear violation of the ceasefire,” Centcom said in a post to X. 

The latest exchange threatens to test a fragile ceasefire reached last month that reopened the critical Strait of Hormuz for commercial shipping after months of disruption.

Signaling that things have taken a turn for the worse, the U.S. Treasury Department on Tuesday withdrew a waiver that had allowed Iran to sell its oil.

“Iran will only reap benefits if they exhibit good behavior,” a U.S. official told CNBC, speaking on condition of anonymity to discuss private talks. “Iran’s actions in the Strait were wholly unacceptable to the United States and will be met with consequences.”

Three vessels were attacked in or near the Strait of Hormuz on Tuesday, according to the U.S.-led Joint Maritime Information Center, which raised its threat assessment for ships transiting the waterway to “severe,” warning that further hostile action by Iran was likely.

— CNBC’s Spencer Kimball and Megan Cassella contributed to this report.