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Fresh military escalation between the United States and Iran pushed crude oil prices sharply higher on Wednesday, with domestic crude futures climbing to their highest level in two weeks amid growing concerns over supply disruptions through the Strait of Hormuz.

The rally followed fresh US military strikes on Iran, renewed attacks on commercial vessels in one of the world's busiest shipping lanes and Washington's decision to withdraw a sanctions waiver that had allowed Tehran to continue selling crude oil in global markets.

According to PTI, crude oil futures on the Multi Commodity Exchange (MCX) rose as much as 3.39 per cent during the session, tracking gains in international benchmarks.

MCX Crude Oil Touches Two-Week High

The July crude oil contract on the MCX gained Rs 227, or 3.39 per cent, to trade at Rs 6,932 per barrel in a turnover of 19,697 lots. The contract was last seen around these levels on June 23, when it settled at Rs 6,964 per barrel.

The August contract also moved higher, rising Rs 206, or 3.06 per cent, to Rs 6,930 per barrel across 2,872 lots.

Traders told PTI that renewed geopolitical uncertainty in West Asia and fears surrounding the Strait of Hormuz were driving buying activity in crude oil futures.

Global Oil Benchmarks Rally

The gains were mirrored in international markets.

Brent crude futures for September delivery climbed $2.56, or 3.45 per cent, to $76.72 per barrel on ICE.

Meanwhile, West Texas Intermediate (WTI) crude for August delivery advanced $2.30, or 3.27 per cent, to $72.74 per barrel on the New York Mercantile Exchange (NYMEX), its highest level in nearly two weeks.

According to Aamir Makda, Commodity & Currency Analyst, Technical Research at Choice Broking, US WTI crude has gained more than 5 per cent this week after the United States launched additional air strikes on Iran.

Makda noted that Washington's decision to revoke a temporary sanctions waiver for Iranian crude exports could tighten global oil supplies further. He added that the move followed a series of attacks on vessels transiting the Strait of Hormuz.

Fresh Military Escalation Raises Supply Concerns

The latest rally in oil prices came after the US Central Command (Centcom) announced fresh military strikes on Iran, saying the operation was launched in response to attacks on commercial shipping.

Centcom said the action was intended "to impose heavy costs for targeting and attacking commercial shipping crewed by innocent individuals in an international waterway."

The military action followed attacks on three commercial tankers within a 24-hour period in and around the Strait of Hormuz.

According to the UK Maritime Trade Operations (UKMTO), all three vessels sustained damage, although no casualties were reported.

The latest escalation comes only weeks after the United States and Iran signed an interim memorandum of understanding aimed at pausing hostilities.

Sanctions Rollback Adds To Market Jitters

Adding to market uncertainty, the Trump administration revoked a key sanctions waiver that had permitted Iran to continue selling crude oil internationally under the interim agreement.

According to a notice published by the US Treasury Department, companies operating under the waiver have until July 17 to complete existing transactions.

Iran criticised both the military strikes and the withdrawal of the waiver, describing the actions as a violation of the memorandum of understanding and accusing Washington of acting in "bad faith".

With military tensions resurfacing, commercial shipping under threat and sanctions tightening once again, analysts expect crude oil prices to remain sensitive to geopolitical developments.