Oil Prices Rise Nearly 2% As Hormuz Threat Becomes ‘Severe’ After U.S Strikes 80 Iranian Sites

Oil prices increased nearly 2% on Wednesday, amidst renewed attacks in the Middle East after the U.S launched fresh strikes on Iran and reimposed sanctions on exports of Iranian oil.

After the exchange of fire, the threat level in Hormuz increased to severe.

The escalation followed what the U.S called an Iranian attack on three commercial ships exiting the Strait of Hormuz, a vital shipping route for oil exports in the Middle East.

Brent crude futures increased by 1.9% to $75.54 a barrel, while U.S West Texas Intermediate Crude gained $1.37, or 1.9%, to $71.81 a barrel.

The rising prices would have global repercussions and send domestic prices spiralling.

Till the U.S and Iran signed a Memorandum of Understanding, India had raised petrol and diesel prices at least 4 times since March.

Last month, after the U.S and Iran reached a truce, oil prices retreated to pre-war levels but the change was only short-lived.

The spike in oil and gas prices came after a Qatari LNG tanker faced risks of explosion and another tanker suffered significant damage through the waterway.

The Joint Maritime Information Center (JMIC) also raised the threat from ‘substantial’ to ‘severe’, the first time since June 15, 2026, that the threat level was increased to its highest category.

The recent incidents highlight that the threat environment is heightened and warrants extreme vigilance, JMIC said in an advisory.

It also informed mariners to expect continued naval deployments and congestion along the transit routes and increased hailing by the Islamic Revolutionary Guard Corps.

On Tuesday, the White House also revoked a license it had granted Iran to sell its oil, adding that Washington’s actions in Hormuz were not acceptable and warned that they carry consequences.