Oil Prices Jump 4% After Iran Attack

Oil Prices Jump 4% After Iran Attack

On Wednesday, 29 July 2026, oil markets rebounded sharply as Brent crude futures rose 4.2% to $87.62 a barrel and U.S. West Texas Intermediate (WTI) futures gained 4.1% to $82.49 a barrel. The price surge followed a three‑day decline during which WTI fell roughly 15% from Friday’s intraday peak near $93.50 as traders unwound bullish positions.

The catalyst was Iran’s launch of a second wave of ballistic missiles aimed at U.S. forces in the Middle East. U.S. Central Command reported that all missiles were intercepted, but the attack revived concerns that the recent diplomatic pause could unravel and disrupt regional oil supplies. The escalation came after a period of optimism sparked by Israeli Prime Minister Benjamin Netanyahu’s meeting with U.S. President Donald Trump in Washington, during which Trump expressed a “good chance” that talks with Iran would make progress, a claim Tehran denied.

Analysts at ANZ noted that attempts to reopen the Strait of Hormuz stalled after Iran rejected an Omani proposal for a shared shipping‑management framework. Tanker traffic through Hormuz remained subdued, and Saudi Arabia reported intercepting drones and missiles targeting oil facilities in its Eastern Province, underscoring persistent threats to regional energy infrastructure.

On the supply side, the American Petroleum Institute (API) estimated that U.S. crude inventories fell by about 3.3 million barrels in the prior week, indicating resilient demand ahead of the official government data release scheduled for later on Wednesday. Additionally, reports suggested that OPEC+ is contemplating a three‑month pause to its planned output increases starting in October, after completing the scheduled return of voluntary output cuts. This potential pause added further support to the price recovery.

Overall, the combination of renewed geopolitical tension, tightening U.S. crude stocks, and the prospect of a temporary halt to OPEC+ production hikes drove oil prices higher, reversing the recent sell‑off.