Oil prices soared to a one-month high following new attacks by the U.S. and Iran in the Strait of Hormuz

Oil prices rose nearly 3% on July 14, hitting new highs over the past four weeks. At their peak, futures for the benchmark Brent crude traded above $85 per barrel, while WTI contracts exceeded $80. The day before, Brent rose 9.6%—its sharpest one-day jump since May 2020. “Black gold” is now trading at its highest level since June 17—the date when the U.S. and Iran signed a ceasefire memorandum, according to Reuters.

“The key indicator to watch is the actual flow of oil through the Strait of Hormuz. Any significant restriction on tanker traffic, a prolonged reduction in the number of vessels passing through the strait, or disruptions to exports are likely to trigger a new round of oil price increases,” said Priyanka Sachdeva, an analyst at Phillip Nova. “Conversely, if supplies continue despite military escalation, part of the current geopolitical premium could gradually disappear,” she added (quoted by Reuters).

Shipping data showed that over the past 24 hours, the number of tankers passing through the strait fell to a two-month low, the agency notes.

The U.S. military has been carrying out strikes against Iran for the third consecutive day. U.S. President Donald Trump also reimposed a naval blockade on Iran the day before and proposed charging ships a fee of 20% of the cargo’s value for ensuring a safe passage. Iranian cruise missiles struck two tankers from the United Arab Emirates in the southern part of the strait, which is controlled by Oman, the UAE Ministry of Defense reported. One crew member was killed, and eight others were injured.

This article was AI-translated and verified by a human editor