Oil prices surged over 6% on Wednesday. At least four oil and gas tankers diverted from the Strait of Hormuz following renewed attacks on commercial vessels.
U.S. President Donald Trump declared a recent ceasefire with Iran over. The U.S. launched retaliatory strikes, renewing fears of a wider conflict. These tensions threaten to severely disrupt global energy supplies.
Brent crude jumped to over $78 per barrel. WTI crude surpassed $75 per barrel. Maritime authorities raised the threat level in the critical waterway.
About one-fifth of the world's oil supply passes through the Strait of Hormuz. Companies are rerouting vessels to avoid the area. These diversions create immediate logistical challenges and raise shipping costs.
Geopolitical risk boosted energy equities. ExxonMobil recorded pre-market gains. The price spike is expected to boost quarterly profits for major oil producers.