Escalating US-Iran conflict exacerbates supply concerns, pushing international oil prices to a six-week high.
The United States launched airstrikes against Iran for the 12th consecutive night, while Iran claimed to have completely controlled and closed the Strait of Hormuz . The pro-Iranian Houthi rebels in Yemen also expanded their attacks on oil tankers in the Red Sea . Market concerns about disruptions to Middle Eastern oil supplies pushed international oil prices to a six-week high on Thursday (July 23).
As of Thursday morning Singapore time, Brent crude futures rose $1.93, or 2%, to $96 a barrel, the highest level since June 8. The previous day, Brent crude had risen more than $3 to close at $94.07.
U.S. West Texas Intermediate (WTI) crude oil futures rose $1.44, or 1.7%, to $88.27 a barrel, after rising nearly 3% in the previous session.
The U.S. military said it had launched airstrikes against Iran for the 12th consecutive night. President Trump had previously threatened to destroy an Iranian bridge or power plant if Iran fired on ships in the Strait of Hormuz, further escalating the conflict.
Iran's Islamic Revolutionary Guard Corps (IRGC) stated that an oil tanker exploded and caught fire while attempting to pass through a mine-torn channel south of the Strait of Hormuz, and two other tankers turned back. The IRGC also claimed that the Strait of Hormuz is under Iranian control and "completely closed" while US operations continue in the region, prohibiting any oil tankers from entering or leaving without Iranian coordination. Meanwhile, the Houthi rebels in Yemen, who support Iran, have expanded their operations, announcing a naval blockade of Saudi Arabia and threatening attacks on ships carrying Saudi crude oil through the Bab el-Mandeb Strait.
The Houthi rebels claimed to have launched military operations against two Saudi oil tankers. Maritime security agencies also stated that one of the tankers, named Encelia and flying the Saudi flag, was attacked in the Red Sea. The Houthis further claimed to have forced approximately 10 ships to turn back and stop their journeys to Saudi ports, although Reuters was unable to independently verify this claim at the time.
Analysts point out that the Strait of Hormuz and the Bab el-Mandeb Strait are both important global energy transport routes, and if the situation continues to deteriorate, global oil supplies may be further affected.
On the other hand, the U.S. Energy Information Administration (EIA) reported that U.S. crude oil inventories increased by 2 million barrels as of last week, contrary to market expectations of a 1.1 million barrel decrease. The increase was mainly due to decreased refinery throughput, reduced crude oil exports, and increased imports. Nevertheless, geopolitical risks continued to dominate market sentiment, driving oil prices higher.
Source: [Lianhe Zaobao] (https://www.zaobao.com/finance/world/story20260723-9406576)