Quick Summary
- Brent crude climbed to $94.13 while WTI reached $87.42, marking six-week peaks for both benchmarks
- American military conducted its 11th consecutive night of operations against Iranian installations
- Houthi forces in Yemen announced plans for a naval blockade targeting Saudi oil shipments in the Red Sea
- Three tankers carrying Saudi crude reversed course in the Red Sea following the blockade announcement
- Kazakh crude shipments through the Black Sea encountered new disruptions
Crude oil markets are experiencing a sharp upward trajectory. Brent crude surged to $94.13 per barrel while West Texas Intermediate climbed to $87.42, representing the strongest performance for both benchmarks since June 11. The rally marks four consecutive sessions of gains, with prices advancing in six of the past seven trading days.
The primary catalyst behind this surge is the intensifying military confrontation between Washington and Tehran. U.S. military forces executed operations against Iranian military infrastructure for an 11th consecutive night on Wednesday. The strikes targeted missile launch facilities, drone bases, command centers, and air defense installations.
Tehran has responded with force. Iranian military units launched counterstrikes on American military installations across Bahrain, Kuwait, and Jordan. Kuwaiti defense forces also successfully intercepted Iranian drones, further escalating regional instability.
BREAKING: Iran’s IRGC has announced it will target U.S. and Israeli commanders directly in their private residences, in retaliation for American strikes on the homes of Iranian commanders and their families, per an IRGC statement.
“Because you targeted the private residences ofā¦
ā The Hormuz Report (@HormuzReport) July 22, 2026
President Trump declared on Tuesday that Washington has “no interest in meeting” with Iranian leadership. Secretary of State Marco Rubio indicated diplomatic channels remain available but criticized Tehran for violating an agreement regarding shipping through the Strait of Hormuz.
According to U.S. Central Command, Iranian forces have targeted over 30 commercial vessels during the last three months. Despite American assurances that the Strait remains navigable, maritime insurers and energy traders remain skeptical without explicit commitments from Iran to cease vessel attacks.
Yemen’s Houthis Announce Red Sea Blockade
A fresh threat materialized this week in the Red Sea corridor. The Iran-aligned Houthi movement in Yemen declared a blockade specifically targeting Saudi petroleum shipments traversing the Bab el-Mandeb Strait. Three Saudi tankers changed course on Tuesday immediately following the announcement.
This development poses significant challenges for Saudi Arabia. The kingdom had previously redirected tanker traffic away from the Strait of Hormuz in response to Iranian aggression. The Red Sea passage represented one of the kingdom’s few viable alternative routes.
Market analysts at ING noted that any sustained blockade would compel tankers to circumnavigate via the Suez Canal, substantially increasing transit duration and costs for shipments bound for Asian markets.
Black Sea Export Challenges Compound Global Supply Anxiety
Middle Eastern disruptions aren’t the only factor constraining oil supplies. Kazakhstan’s crude shipments via the Black Sea encountered obstacles after the Caspian Pipeline Consortium halted loadings. Persistent attacks on vessels at a Russian export facility necessitated the suspension.
ING market strategists proposed that Brent trading just above $91 might be undervalued considering the accumulation of supply disruptions. “Especially if these interruptions continue into August,” they emphasized.
Regarding inventory data, the American Petroleum Institute documented a 2.6 million barrel increase in U.S. crude stockpiles last week, contrary to market forecasts predicting a decline. Official figures from the Energy Information Administration are scheduled for release Wednesday.
With military operations persisting across multiple theaters and maritime security deteriorating around both the Hormuz and Bab el-Mandeb chokepoints, market experts indicate upward price momentum for crude oil is likely to strengthen.
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