Escalating Iran-US hostilities and a blocked Strait of Hormuz drive oil prices to a one-month high, raising supply disruption fears.
West Texas Intermediate crude surged to $84.00, its highest level in a month, as Iran-US military clashes intensified. The US conducted a ninth consecutive day of strikes on Iranian targets following the death of another US soldier in Iraq, fueling concerns of a broader conflict.
The Strait of Hormuz remains closed, with reports of a vessel fire off Oman’s coast. Iran’s Revolutionary Guard warned of a “punitive operation” and vowed no oil would pass through the strait until US aggression ceases. WTI has recovered half its losses since May’s ceasefire, trading 23% above early July lows but 25% below its March peak of $113.28.
Markets are pricing in heightened geopolitical risks, with supply disruptions in a key oil transit route amplifying upward pressure on prices.