Oil prices moved higher following fresh U.S. strikes against Iran, launched in retaliation for Tehran’s attacks on commercial vessels transiting the Strait of Hormuz.

August West Texas Intermediate (WTI) crude futures rose 2.87% earlier in the session to $72.46 per barrel. Brent crude, the international benchmark, for September delivery, gained 2.75% to $76.18 per barrel.

The U.S. military announced it had launched a “series of powerful strikes” against Iran following attacks on three commercial ships passing through the Strait of Hormuz on Tuesday, warning that Tehran would face a “heavy price” for targeting commercial shipping.

“The strikes are a response to Iran’s attacks on three commercial vessels transiting the Strait of Hormuz. Iran’s aggression was unjustified, dangerous, and a clear violation of the ceasefire,” the U.S. Central Command said in a post on X.

The latest exchange of strikes threatens to undermine the fragile ceasefire reached last month, which had allowed commercial shipping to resume through the Strait of Hormuz after months of disruption.

Further adding to market concerns was the U.S. Treasury Department’s decision to revoke the waiver that had allowed Iran to continue selling oil.

“Iran will benefit only if it demonstrates good behaviour,” a U.S. official, speaking anonymously, told CNBC. “Iran’s actions in the Strait were completely unacceptable to the United States and will have consequences,” the official added.

According to the U.S.-led Joint Maritime Information Center, three vessels came under attack on Tuesday in or near the Strait of Hormuz. The centre upgraded its threat assessment for ships transiting the waterway to “severe,” warning that further hostile action by Iran is possible.

“It is not in Iran’s interest to reach an agreement at this stage, as its negotiating leverage with Trump increases the closer we get to November, although yesterday’s attacks coincided with the state funeral ceremonies for Ali Khamenei,” said Andrew Jackson, strategic analyst at Ortus Advisors.

The U.S. midterm elections are scheduled for November, and any inflationary surge driven by the Middle East conflict could increase the political cost for the Trump administration.

Jackson also noted that rising oil prices and higher bond yields increase the likelihood that the Federal Reserve may be forced to adopt a more hawkish stance if inflation proves persistent. The yield on the benchmark 10-year U.S. Treasury note was up 2 basis points at 4.549%.