Crude oil prices jump 3% to $76/bbl after US strikes over 80 targets in Iran; gold down 0.4%

Global benchmark Brent crude oil prices surged 3.2% to an intraday high of $76.60 per bbl on Wednesday’s market, compared to $74.16 per bbl at the previous commodity market close, according to Investing.com data.

Latest reports suggest that along with the retaliatory attacks on Iran, the United States has also re-imposed sanctions on Iranian oil exports as both nations now test the fragility of the interim peace agreement and the existing ceasefire MoU.

Investors are expected to closely monitor any further escalations in West Asia as the United States and Iran's attacks are likely to impact the global energy and commodity prices. Both countries still remain engaged in negotiating the final peace agreement withing their 60-day timeline.

Oil price check

At 9:31 am (IST), Brent crude oil prices were trading 2.6% higher at $76.09 per bbl on Wednesday’s trading session, compared to $74.16 per bbl at the previous market close, according to Investing.com data.

Oil prices have gained more than 6% in the last five market sessions. However, the energy rates remain trading 19% lower on a one-month basis and nearly 20% lower in the last three months on the global market.

Meanwhile, the US-based West Texas Intermediate (WTI) crude oil prices were trading 2.6% lower at $72.33 per bbl on July 8, compared to $70.44 per bbl at the previous commodity market close, as per the exchange data.

Oil sanctions & US attacks

United States carried out offensive retaliatory strikes against Iran on July 7, hitting 80 targets in the country in response to the West Asian country allegedly attacking commercial vessels transiting the Strait of Hormuz.

“U.S. Central Command (CENTCOM) forces 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 latest attacks on commercial vessels transiting the Strait of Hormuz,” said US Central Command in its official statement.

The attacks were targeted at Iranian air defence 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 of Hormuz.

“CENTCOM forces remain postured and prepared to hold Iran accountable when the agreement is not adhered to or obeyed,” as per the official statement. The United States also reimposed sanctions on Iranian oil exports.

In response, Iran’s joint military command, Khatam al-Anbiya Central Headquarters, said that Iran will deliver a “crushing response” to US strikes.

Gold prices today

At 12:08 am (ET), the New York Mercantile Exchange-based COMEX gold prices were trading 0.49% lower at $4,137.20 per ounce in the United States on Wednesday, compared to $4,157.40 per ounce at the previous commodity market close.

The rising demand for the US dollar in the market due to the heightened geopolitical sentiment in West Asia has, in turn, weighed down on gold prices on Wednesday. Traders are less likely to purchase gold at higher dollar prices to avoid getting lower quantities of the precious metal.

The US dollar index (DXY) was trading 0.08% higher at 101.11 on July 8, compared to 101.02 at the previous currency market close, Investing.com data showed. The currency play impacts the prices of precious metals as investors switch their bets to other safe havens and yield-bearing assets like US Treasury bonds.