Oil prices surge to six-week high on Iran-US escalation

AI digestMimile.ai EditorialJuly 23, 2026 at 08:09 AM

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Oil prices surge to six-week high on Iran-US escalation

Brent crude rose 2% to $96 a barrel on Thursday, the highest since early June, after the US launched a 12th consecutive night of strikes on Iranian targets. The escalation follows President Trump's warning that Washington will respond to any Iranian attacks on vessels in the Strait of Hormuz, heightening fears of a broader conflict.

Market Reaction

Brent crude settled at $94.07 on Wednesday before jumping $1.93 to $96 on Thursday, a six-week high. WTI rose 1.7% to $88.27, adding to a near-3% gain the previous session. The rally was driven by continued US-Iran military escalation and threats to shipping in the Strait of Hormuz.

Strait of Hormuz Threats

Iran's Islamic Revolutionary Guard Corps (IRGC) said one oil tanker caught fire after an explosion while attempting to transit the southern route of the Strait, which it claims is mined. Two other tankers diverted. Iran stated it fully controls the strait and warned that no oil vessel can pass without Tehran's approval as long as US operations continue.

Houthi Attacks

Yemen's Iran-backed Houthis announced a naval blockade of Saudi Arabia, threatening to attack vessels carrying Saudi oil through the Bab el-Mandeb strait. They claimed to have attacked two Saudi tankers and forced about ten ships to turn away. The claims could not be independently verified.

What's Next

The UN Security Council is set to meet on Friday to discuss the escalating crisis. It remains unclear whether diplomatic channels can de-escalate tensions before supply disruptions materialize.

1 source

Oil prices surge to six-week high on Iran-US escalation

inbusiness.kz

Inbusiness.kz

Hormuz tanker attack raises oil supply fears

Reports emerged of an attack on a tanker in the Strait of Hormuz, a key oil transit chokepoint. Oil prices rose on supply disruption concerns. No group immediately claimed responsibility.

Rapidan sees Strait of Hormuz closed through 2027, tightening oil supply

Energy analysts at Rapidan Energy Group forecast that the Strait of Hormuz will remain effectively closed to free navigation through late 2027, one year longer than previously expected. The firm said disruptions will be deeper and more persistent, materially tightening global oil balances. The revised outlook comes as hopes for a quick resolution to the U.S.-Iran conflict fade after a ceasefire collapse.

US becomes world's largest oil exporter for third month

The United States exported 10.5 million barrels per day of crude oil and petroleum products in May 2026, maintaining its position as the world's largest oil exporter for the third consecutive month. Russia exported about 7 million bpd and Saudi Arabia 5.9 million bpd during the same period. The shift reflects growing demand for reliable suppliers amid Middle East tensions and risks to shipments through the Strait of Hormuz.

Finance

LNG supply crisis pushes buyers toward coal and oil

The Iran conflict has disrupted LNG shipments through the Strait of Hormuz and Bab el-Mandeb, driving European gas prices to four-month highs above €60/MWh. Asia, which accounts for nearly 90% of Middle East LNG exports, faces severe supply shortages. Even as QatarEnergy estimates 12.8 million tonnes per year of LNG capacity will be offline for three to five years, buyers are turning to coal and oil as substitutes.

Oil prices surge to six-week high on Iran-US escalation

Market Reaction

Strait of Hormuz Threats

Houthi Attacks

What's Next

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