- Oil prices rose more than 1.5 per cent to their highest in more than six weeks on Thursday (Jul 23), amid escalating tensions as the United States launched a new round of strikes on Iran and Yemen's Houthis targeted oil tankers in the Red Sea.
- Brent crude futures rose US$1.93, or 2 per cent, to US$96 by 12.11am GMT, marking the highest price since June 8.
- US West Texas Intermediate crude increased by US$1.44, or 1.7 per cent, to US$88.27 after a nearly 3 per cent rise on Wednesday.
- The US military confirmed it carried out a 12th consecutive night of attacks on Iran, escalating tensions in the region.
- Iran's Revolutionary Guards reported that an oil tanker caught fire after an explosion while attempting to pass through a mined route south of the Strait of Hormuz, claiming the strait was under their control and completely closed.
- The Houthis announced a naval blockade of Saudi Arabia and targeted two Saudi oil tankers, threatening to disrupt global energy supplies.
- Crude stocks in the US rose by 2 million barrels last week, as reported by the Energy Information Administration, indicating a shift in supply dynamics.
Oil prices have surged to six-week highs as tensions escalate between the U.S. and Iran. Brent crude futures increased by 2% to US$96, while West Texas Intermediate crude rose 1.7% to US$88.27 amid military actions and threats to shipping routes.12
The U.S. military has conducted a 12th consecutive night of strikes on Iran, following President Trump's warning that any Iranian aggression against U.S. vessels would be met with force. This has heightened fears of a broader conflict in the region.
Iran's Revolutionary Guards reported that an oil tanker caught fire after an explosion in a mined area near the Strait of Hormuz, claiming control over the strait and warning that no vessels could pass without their coordination. They stated, “The strait was under their control and completely closed” amid ongoing U.S. military actions.56
In addition to the U.S.-Iran conflict, the Iran-aligned Houthis have escalated their operations, targeting Saudi oil tankers and imposing a naval blockade in the Red Sea. They claimed to have forced around 10 ships to retreat after warning against sailing to Saudi ports, threatening global energy supplies.
On the supply side, the Energy Information Administration reported a 2 million barrel increase in U.S. crude stocks last week, indicating a complex interplay of geopolitical tensions and market dynamics affecting oil prices.9
“Brent crude futures hit $96 per barrel, the highest since June 8, while US West Texas Intermediate crude rose to $88.27. The US military launched a 12th consecutive night of strikes on Iran, and Iran's Revolutionary Guards said the Strait of Hormuz is under their control and "completely closed".”
