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strikeJul 22, 2026

Crude continues rally: Brent tops $92, WTI above $85 as Strait of Hormuz tensions threaten global supplies

Summary

Crude oil prices extended their rally on Wednesday, with Brent crude holding above the $90-a-barrel mark as escalating tensions in the Middle East kept investors focused on the risk of further disruptions to global energy supplies. Brent crude was trading at $92.40 a barrel, up 1.53% or $1.39, while US West Texas Intermediate (WTI) crude gained 1.38% or $1.16 to $85.50 a barrel. The gains came after both benchmarks ended Tuesday at their highest closing levels in around five weeks. Brent settled at $91.01 a barrel and WTI at $84.91, each rising about 2% during the session as geopolitical developments added to supply concerns. The momentum comes as the Middle East crisis involving the United States, Iran and the Iran-backed Houthis has intensified. Earlier this week, the Houthis announced a naval blockade on Saudi Arabia, expanding concerns over disruptions to energy supplies and trade routes. Shipping activity has already been affected. Two tankers carrying Saudi crude destined for China and India changed course in the Red Sea after the Houthi threats and headed back towards the Suez Canal, according to LSEG shipping data cited by Reuters. Despite this, Saudi Arabia's Red Sea export terminal at Yanbu was reported to be operating normally. Military action also continued overnight. US forces struck targets in southern and western Iran, while Iran targeted US sites in Bahrain, Kuwait and Jordan. At least one tanker was also hit in the Strait of Hormuz, a key global energy shipping route. Beyond the Middle East, another supply risk emerged after the Caspian Pipeline Consortium suspended receiving oil from Kazakhstan following attacks on oil tankers at its Black Sea terminal. Russia blamed Ukraine for the attacks, while Ukraine did not comment. Separately, data from the Joint Organizations Data Initiative showed Saudi Arabia's crude exports fell for the third consecutive month in May, reaching a record low. Markets are now looking ahead to US inventory data for fresh direction. Analysts expect crude stockpiles to have fallen by 0.5 million barrels in the week ended July 17. If confirmed, it would mark a second straight weekly decline. The comparable week last year recorded a draw of 3.2 million barrels, while the average decline over the past five years was 1.2 million barrels. The impact of the conflict is also being felt beyond energy markets. A United Nations report released on Tuesday projected that more than 500 million people could still face chronic hunger by 2030 despite recent improvements, with Africa expected to account for the largest share. International Fund for Agricultural Development (IFAD) President Alvaro Lario warned that prolonged disruptions to shipping and energy supplies could worsen food insecurity. According to AP, the expert had also warned that if uncertaility continues, including around the Strait of Hormuz, could leave an additional 9 million to 18 million people facing hunger. Meanwhile, the Middle East has continued to boil with US and Iran once again launching strikes. The crisis that began on February 28 had already pushed crude higher to $126 per barrel from the $70 per barrel price, though prices cooled after both sides signed the now breached interim peace deal.

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  • TOI Business DeskBy TOI Business Desk

    Crude oil prices extended their rally on Wednesday, with Brent crude holding above the $90-a-barrel mark as escalating tensions in the Middle East kept investors focused on the risk of further disruptions to global energy supplies. Brent crude was trading at $92.40 a barrel, up 1

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The United States is still willing to negotiate an end to the Iran crisis, but Tehran is not serious about talks, as the widening conflict disrupted two of the world's most critical energy chokepoints, US Secretary of State Marco Rubio said on Wednesday.

Rubio made his comments in a meeting of Southeast Asian foreign ministers a day after three oil tankers carrying Saudi crude to Asia reversed course in the Red Sea, apparently in response to threats from Yemen's Iran-aligned Houthis. The Houthis, who control the coast at the mouth of the Red Sea, announced a naval blockade on Saudi Arabia on Monday, opening a potential new front in the war which has killed thousands of people across the Gulf since it began on February 28 with US and Israeli attacks on Iran.

With Iran already threatening shipping through the Strait of Hormuz leading out of the Gulf, the Red Sea has served as the main alternate route out for millions of barrels of Saudi oil per day. A senior Iranian official told Reuters on Monday that Tehran had received a proposal from mediators for a 10-day ceasefire in efforts to salvage the interim ceasefire agreement signed by the US and Iran in June, which replaced an earlier April ceasefire.

Rubio doubts Tehran's commitment to diplomacy In another sign that diplomacy remains alive, Iran's Interior Minister, Eskandar Momeni, has visited the mediating Pakistan and asked Islamabad to continue its efforts. Rubio said Washington was "always committed to diplomacy" but doubted whether Tehran was equally committed to negotiations.

"The problem we're having right now is that they're not serious about talks. If they're serious, we're serious. If they're not, then we will do what's necessary to protect our interests, and also the interests of our allies," Rubio said in Manila. He stressed that Iran could not be allowed to control the Strait of Hormuz, arguing it would create a dangerous precedent for the world, including Southeast Asian countries, many of which have territorial disputes in the South China Sea with China.

"If we create a precedent in the Middle East where a nation state can decide that they are going to control an international waterway, charge a toll, and if you don't pay them, blow up your ships, we have created a very dangerous precedent, which will repeat itself in other parts of the world, including in this region," Rubio said.

With no diplomatic breakthrough in sight, the US military bombed targets across Iran for an 11th straight night on Tuesday. Tehran residents reported hearing explosions in the early hours of Wednesday as Iran activated its air defenses over the capital, Iran's semi-official Fars news agency said.

Explosions were also reported in the southeastern coastal cities of Chabahar and Konarak, and two blasts were heard in Bushehr, home to Iran's only nuclear power plant, Iran's official IRNA news agency reported. Earlier, Iran targeted US military sites in Bahrain, Kuwait, and Jordan, and a tanker was hit in the Strait of Hormuz.

Iran said it had struck infrastructure belonging to Amazon in Bahrain, where the US tech company operates a regional data center. Amazon did not comment, and Reuters could not verify the report. US service members killed in escalations with Iran US President Donald Trump confirmed that 18 US service members had been killed so far in the war, including four in Iranian attacks on US military bases in Jordan and Iraq over the last few days.

Oil prices rose further in Asian trade on Wednesday after climbing more than 2% on Tuesday following the Houthi threats, with Brent crude hovering above $91 a barrel and US gasoline back over $4 a gallon. In a letter to shippers, the Houthis on Tuesday threatened to attack any ships that load or discharge Saudi oil.

Trump said the Houthis had not yet shut the Bab el-Mandeb, the "Gate of Tears" strait leading into the Red Sea, and threatened to act against them if they did. "So far it hasn't happened," Trump said. "If something like that happens, we take care of it.

" Three oil tankers loaded with Saudi crude for China and India made U-turns in the Red Sea on Tuesday, heading towards the Suez Canal rather than braving the Yemeni coast at the sea's mouth. Throughout the war, Saudi Arabia partially escaped the shipping disruption by piping oil to Yanbu on the Red Sea instead.

But a full closure of that alternative route by the Houthis could reduce global oil supply as it would leave most Saudi oil exports trapped. On Tuesday, Trump renewed his threats to again attack Iran's nuclear facilities at Natanz "pretty soon", which he said in June 2025 had been "totally obliterated" after the US military bombed the facility, buried in a mountain range, that month.

Iran promised it would retaliate. Fifty civilians have been killed and 500 wounded in the recent US strikes on Iran, a health ministry official said.

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Three commodity vessels transited the Strait of Hormuz on Tuesday, according to Kpler data, consisting of the general cargo ship Kaiser exiting loaded, the dry bulk carrier H7 Smb8 entering in ballast, and the Hsin Ocean carrying refined palm olein; no VLCC or LNG tankers were observed.

The U.S. military stated it conducted strikes on Iran for the 11th consecutive night. In the Red Sea, two oil tankers carrying Saudi crude reversed course before reaching the Bab el-Mandeb strait following threats from Yemen’s Houthis, who also warned shipping companies against using Saudi ports.

Location: Bab-el-Mandeb
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President Donald Trump is scheduled to attend the dignified transfer of four U.S. service members at Dover Air Force Base on Wednesday. The remains include two Army soldiers identified by the Defense Department as killed in attacks in Jordan, a third service member reported missing after those attacks and now described by an administration official as deceased, and one killed in Iraq.

An unnamed official stated that two of the deaths resulted from Iranian missile and drone strikes, though the account was provided on condition of anonymity.

Location: Iran
strikeUnverifiedUSIsraelIranProxyChina
1 source

US Secretary of State Marco Rubio stated that Washington remains open to negotiations to resolve the Iran crisis but that Tehran is not serious about talks, amid reported shipping disruptions at the Red Sea and Strait of Hormuz. Three oil tankers reversed course in the Red Sea following threats attributed to Yemen’s Houthis, who announced a naval blockade of Saudi Arabia on Monday in connection with a conflict that began on 28 February.

Iranian officials separately reported receiving a mediator proposal for a 10-day ceasefire and that Iran’s interior minister requested continued mediation efforts during a visit to Pakistan.

Location: Iran