WTI Oil Prices Surge After US Military Strikes on Iran and Sanctions Waiver Revocation

West Texas Intermediate (WTI) crude oil prices climbed sharply, gaining nearly 5% in the previous trading session and reaching approximately $72.20 per barrel during early Asian trading on Wednesday. The rally follows heightened tensions after the U.S. military conducted airstrikes against Iran and revoked a critical sanctions waiver that previously permitted Iranian oil exports. This escalation follows a series of attacks by Iran on commercial vessels navigating the strategically vital Strait of Hormuz, including a Qatari LNG carrier and a Saudi oil tanker, which threaten to disrupt global energy flows.

The renewed geopolitical friction undermines the fragile U.S.-Iran truce, amplifying concerns over potential disruptions to a key global oil transit route. Meanwhile, market sentiment has reversed from earlier forecasts predicting a supply surplus following OPEC+ production increases and Middle Eastern output expansions, as energy traders reassess supply chain vulnerabilities amid escalating instability.

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