Oil jumps as U.S. fresh strikes on Iran raise worries of extended disruption to energy flows - Oil prices jumped on Thursday after the United States launched a fresh round of military strikes against targets in Iran. Oil prices jumped Thursday after the U.S. launched a fresh round of military strikes against Iran, stoking worries that the Iran war could drag on, disrupting energy supplies for longer. U.S. crude oil futures for July rose 2.94% to $92.68 per barrel. Brent futures, the international benchmark, for August delivery gained 2.52% to $95.45 per barrel. In a post on X, the U.S. Central Command said American forces had started "launching additional self-defense strikes today at 5:15 p.m. ET against multiple targets in Iran at the Commander in Chief's direction." The military said the operation was carried out "in response to Iran's unwarranted and continued aggression." Iranian state media, meanwhile, reported that Tehran had carried out missile and drone attacks against U.S. vessels operating in the Strait of Hormuz. The latest strikes followed comments from U.S. President Donald Trump earlier in the day warning that Washington would intensify its military response against Iran, as he continued to push Tehran toward reaching a deal with the United States. Despite a fresh escalation in the U.S.-Iran conflict, Rystad Energy said Thursday that the oil market was better-positioned to absorb disruptions than in past crises, citing record U.S. crude exports, softer Chinese demand and alternative export routes that reduce reliance on the Strait of Hormuz. The consultancy's senior vice president Jorge Leon, however, warned that the chances of a near-term diplomatic breakthrough have diminished, leaving oil prices vulnerable to sharp swings as investors assess whether the latest hostilities will remain contained or evolve into a more prolonged conflict.
Oil jumps as U.S. fresh strikes on Iran raise worries of extended disruption to energy flows - Oil prices jumped on Thursday after the United States launched a fresh round of military strikes against targets in Iran. Oil prices jumped Thursday after the U.S. launched a fresh roun…
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A tanker identified as the Kaifan was struck by an unknown projectile northeast of Oman’s Limah in the Strait of Hormuz, according to a July 21 report from UK Maritime Trade Operations. No ships were observed transiting the strait that day. Attribution of the strike and links to prior incidents have not been confirmed by the vessel’s owner.
Goldman Sachs has projected Brent crude averaging $80 per barrel in the fourth quarter and $75 in the following year, conditional on reduced Middle East tensions, while noting upside risks from potential shipping disruptions in the Strait of Hormuz or Red Sea.
Brent prices rose above $91 per barrel amid recent U.S.-Iran exchanges and Houthi threats to Saudi shipments before edging lower on Tuesday. A senior Iranian official told Reuters that mediators had proposed a 10-day ceasefire to preserve an interim agreement.
US forces struck the tanker Settebello in the Gulf of Oman on June 10, killing three Indian crew members when munitions hit the engine room and adjacent areas. Maritime tracking data indicate the vessel had transported Iranian oil under US sanctions for several years and conducted offshore transfers prior to the strike.
The US military described the action as a precision operation, while reports note the ship was stationary at the time.
Iranian officials reported strikes on US radar and air defense sites in Kuwait and Bahrain, along with the interception of two oil tankers in the Strait of Hormuz. The United States conducted strikes on Iranian targets following the deaths of three US soldiers, with the Pentagon stating the actions aimed to degrade capabilities affecting shipping.
Houthi forces in Yemen announced plans to blockade Saudi ports, while both US and Iranian leaders issued statements on further escalation.