Oil Prices Spike Over 4% To $79 Per Barrel Amid Renewed US-Iran Strikes

Oil markets spiked on Monday, July 13, after renewed military confrontations between the United States and Iran reignited tensions over the Strait of Hormuz, a vital shipping route for global energy supplies.

Brent crude jumped over 4% to exceed $79 per barrel, following a 5.4% gain last week, while US benchmark West Texas Intermediate (WTI) held near $74.

European natural gas prices also climbed by as much as 2.7%, reflecting broader energy market stress.

The escalation was triggered by conflicting claims over control of the strait. Iran asserted that the Strait of Hormuz had been closed “until further notice,” a declaration rejected by the US Central Command (Centcom).

Centcom stated it conducted military operations to ensure freedom of navigation through the strategic passage. Sunday’s strikes marked the fourth round of US military action in a single week, reportedly in response to Iranian attacks on a Cyprus-flagged container vessel. Simultaneously,

Iran’s Islamic Revolutionary Guard Corps targeted commercial ships, prompting US forces to intercept a cruise missile and an attack drone.

Shipping activity through the strait, which channels nearly one-fifth of global crude and liquefied natural gas supplies, was significantly reduced on Sunday, with only two oil product tankers approaching the waterway.

The Joint Maritime Information Center, however, noted that the southern Oman-coordinated shipping lane remained open.

The recent surge in crude prices reflects the return of a geopolitical risk premium to oil markets, reversing earlier declines triggered by a temporary peace agreement that had raised expectations of increased Persian Gulf supplies.

The International Energy Agency (IEA) warned that prolonged hostilities could disrupt efforts to rebuild global oil inventories later this year, potentially affecting economic stability.

Diplomatic prospects appear uncertain. Iran’s Parliament Speaker and chief negotiator, Mohammad Bagher Ghalibaf, insisted that Washington honor prior commitments on Hormuz transit and normalization of Iranian oil exports before talks can resume.

Meanwhile, US President Donald Trump declared the ceasefire “over” while signaling openness to future negotiations.

Explosions near Bandar Abbas, close to the strait, were reported over the weekend. Tehran retaliated with missile and drone strikes targeting American allies, including Kuwait, Jordan, and Qatar.

Notably, a Kuwaiti oil facility was struck, marking the first direct attack on energy infrastructure in several weeks. Analysts caution that further escalation targeting regional oil facilities could push crude prices toward the $100-per-barrel level.