SINGAPORE – Oil prices climbed more than 2% on Wednesday after the United States and Iran carried out strikes against each other, increasing concerns that a fragile ceasefire could collapse and disrupt energy supplies from the Middle East.
Brent crude futures rose by $1.92, or 2.6%, reaching $76.08 per barrel at 0400 GMT. US West Texas Intermediate (WTI) crude also advanced by $1.82, or 2.6%, trading at $72.26 per barrel.
The Islamic Revolutionary Guard Corps (IRGC) said it had carried out missile and drone strikes targeting US military installations in the region, describing the operation as a response to what it called the latest US attacks on Iran.
In a statement issued on Wednesday, the IRGC said the initial phase of its response involved strikes on 85 US military sites located in Bahrain and Kuwait using missiles and drones.
The statement also accused Washington of violating a ceasefire and the “Islamabad understanding,” alleging that US forces launched airstrikes on several coastal facilities and civilian locations along Iran’s southern coastline early Wednesday. The IRGC further claimed the attacks reflected a continued pattern of what it described as US breaches of agreements.
“In the initial response to this aggression, the naval and aerospace forces of the IRGC, through joint missile and drone operations, destroyed 85 major US military installations in Port Salman, (the US) Fifth Naval Base in Bahrain, and Kuwait’s Ali Salem Airbase, and shot down an enemy MQ9 drone that attempted to interfere in the operation,” Tasnim News Agency reported citing the IRGC statement.
Earlier, US Central Command (Centcom) said it has completed a new round of offensive strikes against Iran, July 7, hitting over 80 targets with precision munitions as an immediate response to Iran’s alleged latest attacks on commercial vessels transiting the Strait of Hormuz.
US forces struck Iranian air defense systems, command and control networks, coastal radar sites, anti-ship missile capabilities, and more than 60 Islamic Revolutionary Guard Corps small boats in and near the strait to degrade Iran’s ability to continue attacking international commerce flowing through the international trade corridor.
“Iran recently attacked three commercial vessels transiting the strait including Marshall Islands-flagged M/T Al Rekayyat, Saudi Arabia-flagged M/T Wedyan, and Liberian-flagged M/T Cyprus Prosperity. The unwarranted aggression by Iranian forces is a clear and dangerous violation of the ceasefire and undermines freedom of navigation,” read the Centcom statement.
About the Author
