Oil prices jumped significantly on Monday, July 13, 2026, as the US and Iran engaged in fresh military strikes. Brent crude traded above $79 a barrel, while West Texas Intermediate (WTI) was near $74. This surge follows Brent's 5.4% gain last week. The conflict escalated with Iran declaring the Strait of Hormuz closed "until further notice," a statement disputed by US Central Command (Centcom), which stated that its forces initiated more attacks to maintain freedom of navigation in the waterway.
The recent strikes were the fourth by the US in a week, reportedly in response to an Iranian attack on a Cyprus-flagged container ship. CNN reported that the Islamic Revolutionary Guard Corps fired at commercial vessels again, leading to US aircraft intercepting an Iranian cruise missile and an attack drone. These events reintroduce a "war premium" into crude prices, which had previously erased gains following an interim peace deal that promised increased supply from the Persian Gulf. The International Energy Agency warned on Friday that this flare-up could jeopardize efforts to replenish global oil inventories later in the year.
The uncertainty has severely impacted traffic through the Strait of Hormuz, a critical waterway that typically handles about a fifth of global crude and liquefied natural gas supplies. On Monday, traffic was almost nonexistent, extending a slowdown that began last week. Despite this, the Joint Maritime Information Center asserted that the southern shipping lane, coordinated by Oman, remains open. European natural gas futures also rose by as much as 2.7% (after an 8% gain last week) due to concerns that the escalation could hinder shipments from Persian Gulf producers. An attack on a Kuwaiti oil drilling facility signals a new level of escalation, with analyst Saul Kavonic suggesting prices could reach $100 if the conflict targets broader energy infrastructure.
Diplomatic prospects have dimmed significantly. Iran's Parliament Speaker, Mohammad Bagher Ghalibaf, stated that the "era of one-sided deals is OVER," and Tehran insists Washington must honor prior commitments regarding Hormuz transits and the normalization of its oil exports before talks can resume. President Donald Trump, while declaring the ceasefire "OVER," maintained that the US is willing to continue negotiations. Meanwhile, some Persian Gulf producers, like the United Arab Emirates, had been marketing additional crude using "dark" shuttle tankers after the interim agreement eased export concerns.
