Oil prices surge 5% as tensions escalate between Tehran and Washington

Reuters

Ships crossing the Strait of Hormuz.

Oil prices jumped by nearly 5% on Monday, 13 July 2026, building on the previous week's gains as geopolitical tensions intensified in the Middle East.

By 5:44 AM GMT, Brent crude futures for September 2026 delivery had risen by 4.72% to $79.60 a barrel. Meanwhile, West Texas Intermediate (WTI) crude futures for August 2026 delivery surged by 4.85% to $74.87 a barrel.

Last week, both benchmark crudes registered gains—with Brent up 5.4% and WTI rising 4%—driven by mounting anxieties over potential supply disruptions from the Middle East's primary production hub. Energy markets found further support as threats to shipments through the Strait of Hormuz persisted following announcements of renewed military strikes by the United States and Iran.

This upward turn follows Friday's close, where oil prices fell by 1%, marking a third consecutive session of losses.

Prior to the outbreak of conflict in late February, roughly 20% of global oil and liquefied natural gas (LNG) shipments transited through the Strait of Hormuz. However, recent data from vessel-tracking firm Kpler revealed that just six ships passed through the strait on Sunday, marking the lowest traffic volume in five weeks.

In its monthly report published on Friday, the International Energy Agency (IEA) noted that whilst global oil supplies grew by 4.1 million barrels per day (bpd) in June following the nuclear accord, output remains 9.4 million bpd lower than pre-war levels.

"Hopes for a relatively swift resolution to the recent skirmishes may be cast into doubt following the weekend's escalation of tensions," ANZ analysts noted.


PUKMEDIA