Brent and WTI surge after US-Iran attacks and new sanctions

Oil prices are rising sharply after reports that Iran and the United States have launched airstrikes against each other again. Washington has also reimposed sanctions on Tehran related to oil sales, raising fears that the fragile ceasefire could collapse and that supplies from the Middle East could be disrupted again.

North Sea Brent crude was trading above 76.50 dollars per barrel at around 9:15 a.m. CEST, up 3.2 percent. A barrel of US light crude WTI was up nearly 3.3 percent at the same time, trading at around 72.70 USD.

Brent and WTI had already gained three percent on Tuesday. The United States had earlier revoked a general license authorizing the sale of Iranian oil.

"Although the revocation does not fundamentally change the dynamics of the oil market, it is important for market sentiment. It increases the risk that the preliminary agreement between the US and Iran will collapse," commodity market analysts at ING said.

The US military struck dozens of targets in Iran on Tuesday, describing the action as a response to Iranian attacks on three tankers in the Strait of Hormuz. Sirens also sounded again today in Bahrain and Kuwait. Iran's Revolutionary Guards then announced that they had attacked US military facilities in the two countries.

Oil prices in dollars per barrel (about 159 liters):