Oil jumps as US-Iran tensions resume over Strait of Hormuz

Al-Eqtisadiah from Riyadh

Saturday, July 18, 2026 0:31 | 2 minutes read

Oil prices rose more than 4% on Friday, hitting their highest levels in over a month, after the United States and Iran intensified their attacks across the Gulf region, disrupting oil flows through the Strait of Hormuz again and adding a new threat to shipping through the Bab el-Mandeb Strait in the Red Sea.

Brent crude futures rose $3.87 (4.59%) to settle at $88.10 a barrel.

U.S. West Texas Intermediate crude futures rose $3.54 (4.48%) to $82.49 a barrel.

Both benchmarks hit their highest levels since mid-June and are up about 16% this week.

Brent is heading for a third consecutive weekly gain and U.S. crude for a second.

Read also: America launches strikes on Iran for seventh night and diverts 4 ships

Middle East returns to hot war atmosphere

Fighting between Washington and Tehran intensified on Friday, as the United States bombed bridges and an airport in Iran, which in turn targeted a power and desalination plant in Kuwait.

U.S. forces launched strikes on Iran for the seventh consecutive night, while revealing the diversion of 4 commercial ships, disabling one and boarding another in recent days 'to ensure full compliance' with the blockade of Iranian ports.

In response, Iran said it launched more attacks on U.S. facilities in the Middle East, including the first direct attack in Syria.

Read also: Wall Street ends week lower under chip pressure

Strait of Hormuz back in focus, along with Bab el-Mandeb

The collapse of the interim ceasefire agreement between the United States and Iran led to a sharp decline in oil flows from the strait, through which about 20% of global oil supplies passed before the war.

Iran pressured the Yemeni Houthi group to close the Bab el-Mandeb Strait at the entrance to the Red Sea as well if Washington bombed Iran's electricity grid infrastructure.

Tamas Varga, analyst at PVM Oil Associates, said in a note, 'Given Saudi Arabia's diversion of a large part of its exports to the Yanbu port via the East-West pipeline to avoid the Strait of Hormuz, any such development represents a real threat,' according to Reuters.

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