Oil Jumps Over 4% as US Strikes Iran and Strait of Hormuz Closes
Monday, 20 July 2026
By Atlantic Digest Business Desk
Global oil prices recorded their sharpest weekly gains in months after renewed United States airstrikes on Iran and the closure of the Strait of Hormuz heightened fears of prolonged disruptions to global energy supplies.
Brent crude futures rose $3.87, or 4.59 per cent, to close at $88.10 per barrel on July 18, while U.S. West Texas Intermediate (WTI) crude climbed $3.54, or 4.48 per cent, to settle at $82.49 per barrel. Both benchmarks reached their highest levels since mid-June and posted weekly gains of approximately 16 per cent.
Market analysts noted that Brent crude has now gained about 19 per cent since the conflict between the United States and Iran began in late February, marking its third consecutive week of price increases as geopolitical tensions continue to unsettle global markets.
The latest rally follows the collapse of a ceasefire agreement reached on June 18, when Washington and Tehran signed a memorandum of understanding aimed at ending hostilities. That agreement had briefly eased market concerns, allowing oil prices to retreat toward pre-war levels.
However, the ceasefire has since broken down following fresh military exchanges between both countries. The United States has reportedly reinstated a naval blockade around Iranian ports near the Strait of Hormuz, while Iran has maintained restrictions on commercial shipping through the strategic waterway.
The Strait of Hormuz remains one of the world’s most important energy corridors, carrying a substantial share of global crude oil exports. Any disruption to maritime traffic through the passage has immediate implications for international energy markets, increasing supply concerns and pushing prices higher.
Energy analysts warned that continued fighting could trigger further volatility in global oil markets, particularly if attacks expand to additional energy infrastructure or shipping routes across the Gulf. They cautioned that prolonged instability may place upward pressure on fuel prices and inflation in both developed and emerging economies.
While crude oil prices have surged, the average price of Henry Hub natural gas has remained around $3.70 per million British thermal units (MMBtu). In the United States, average retail gasoline prices have moderated to approximately $3.60 per gallon, down from $4.48 recorded in May, although experts warn that renewed geopolitical tensions could reverse that trend.
Financial markets are now closely monitoring developments in the Middle East, with traders expecting continued price swings as uncertainty over the conflict persists.
Economists say the direction of global oil prices in the coming weeks will largely depend on whether diplomatic efforts can restore stability or whether military operations around the Strait of Hormuz continue to threaten one of the world’s most critical energy supply routes.
