Oil prices increased more than 2 per cent on Wednesday, rising above $75 per barrel after renewed fighting in the Middle East, with the US also reinstating oil sanctions on Iran.
Brent, the benchmark for two thirds of the world's oil, was up 2.63 per cent to $76.11 a barrel at 7.36am UAE time. West Texas Intermediate, the gauge that tracks US crude, was also trading 2.63 per cent higher at $72.29 a barrel.
The US launched another series of strikes on Iran on Tuesday after Tehran was accused of attacking three commercial vessels in the Strait of Hormuz. US Central Command said in a post on X that the "powerful strikes" aimed to "impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway".
Iranian state media reported explosions across southern Iran, including in Sirik, Qeshm Island, Kharg Island and Bandar Abbas.
The US also said it was revoking a general licence that authorised the sale of Iranian oil, placing new economic pressure on Tehran. The waiver was granted under the interim peace deal signed by the US and Iran in late June and gave Tehran 60 days to sell its oil without being subject to American sanctions.
Meanwhile, Iran's top negotiator and Parliament Speaker Mohammad Bagher Ghalibaf accused the US of breaching the interim deal between the countries.
"The era of bullying and extortion is over. It leads nowhere. We don't fold," he said on X after the US strikes.
Sirens were activated in Kuwait and Bahrain on Wednesday morning amid hostilities, officials said.
Brent, which reached nearly $126 per barrel during the peak of the war, dropped below its prewar $72.87 a barrel level last week on easing regional tensions and and concerns of a supply glut.
