Oil Prices Jump 10% After US-Iran Strikes

Oil Prices Jump 10% After US-Iran Strikes

On Friday, Brent crude futures increased 3.0% to $86.79 per barrel while U.S. West Texas Intermediate (WTI) rose 3.5% to $81.65 per barrel, positioning both benchmarks for weekly gains exceeding 10% as the market priced in heightened geopolitical risk.

Analyst Tamas Varga of PVM Oil Associates noted a “lack of urgency in oil circles at present” but acknowledged that recent developments have prevented crude prices from reaching triple‑digit levels.

The escalation began with Iran’s military announcing fresh strikes on U.S. facilities in the Middle East, including its first direct attack in Syria. In response, the United States carried out a sixth consecutive night of strikes targeting Iranian military capabilities.

Iran has repeatedly threatened to disrupt shipping through the Strait of Hormuz, a conduit for roughly 20% of global oil and LNG supplies. Vessel traffic through the strait fell sharply this week following the re‑imposition of a U.S. naval blockade on Iranian ports, indicating a slowdown in shipping activity.

Diplomatic efforts persist, with regional mediators Qatar, Egypt and Pakistan continuing talks despite the apparent collapse of a fragile cease‑fire agreement signed in June.

U.S. inventory data released this week underscored market tightness. The Energy Information Administration reported that crude oil stockpiles declined by 1.7 million barrels in the week ended 10 July, bringing total inventories to 409.7 million barrels, while gasoline inventories fell by 1.5 million barrels. Earlier industry data from the American Petroleum Institute showed a draw of about 564,000 barrels of crude for the same period, smaller than analyst expectations.