Oil and gas sector stocks experienced a broad rally on Wednesday, with Occidental (OXY.US) shares advancing more than 5%. Imperial Oil Ltd (IMO.US) gained over 3%, while shares of ConocoPhillips (COP.US) and Chevron Corp (CVX.US) rose more than 2% each.

This surge coincided with a significant increase in crude oil prices. West Texas Intermediate (WTI) crude oil climbed 7% intraday, reaching $75.39 per barrel. This followed a move where WTI broke through the $70 per barrel level earlier, registering an intraday gain exceeding 2%.

The market movement is attributed to renewed geopolitical tensions in the Middle East. Statements from the U.S. administration indicated that a temporary ceasefire agreement with Iran had concluded, heightening concerns about a potential resurgence of military conflict between the two nations. This commentary followed recent U.S. military actions against Iran and the revocation of waivers that had permitted the sale of Iranian oil. These measures were reportedly in response to recent attacks on vessels in the Strait of Hormuz.