Iran’s Strait of Hormuz blockade sends Brent above $86, marking a 40 percent gain since January amid escalating U.S.-Iran tensions.
Brent crude surged above $86 this week, reaching a one-month high, after Iran’s Revolutionary Guard declared the Strait of Hormuz closed on July 11. The move disrupted roughly 20 percent of global seaborne oil trade, with flows either halted or severely restricted. U.S. airstrikes over three consecutive nights failed to ease Tehran’s control over the critical chokepoint.
Oil prices have climbed nearly 40 percent since January, driven by persistent geopolitical risks and supply constraints. The latest escalation follows repeated U.S. military actions that have yet to weaken Iran’s influence in the region. Analysts warn further disruptions could tighten global supply.
Markets are monitoring the situation closely, with energy stocks reacting to the dual pressures of geopolitical instability and potential Fed policy shifts.