Global crude oil prices climbed to their highest level in around one month on July 14 as renewed military tensions between the United States and Iran increased fears of disruption to energy shipments through the Strait of Hormuz. Brent crude rose by about 2% to nearly $85 per barrel, while US West Texas Intermediate moved close to $80 per barrel. The rally followed a rise of more than 9% in the previous session, Brent’s largest single-day increase since May 2020.
Market concerns intensified after the UAE said two Emirati oil tankers were struck by Iranian cruise missiles in the southern shipping lane of the strait within Omani territorial waters. One Indian crew member was killed and eight others were injured, according to the UAE Ministry of Defence.
The Strait of Hormuz has not been completely closed, but military operations, lower tanker traffic and uncertainty over safe passage have increased the risk premium in oil markets. Analysts warn that prices could rise further if vessel movements or regional oil exports face prolonged disruption.
