Global oil prices hit four-week high amid escalating US-Iran conflict

Global oil prices have climbed to their highest level in four weeks as renewed exchanges of attacks between the United States and Iran have heightened fears over energy supplies. Growing instability in the Strait of Hormuz, the world's most critical oil shipping route, has raised serious concerns about global fuel supply disruptions.

According to the latest market data reported by Reuters on Tuesday (July 14), the price of Brent crude rose by $1.50, or 1.8%, to $84.80 per barrel.

Meanwhile, U.S. West Texas Intermediate (WTI) crude gained $1.70, or 2.2%, to $79.84 per barrel.

In the previous trading session, Brent crude had surged 9.6%, marking its largest single-day gain since May 2020.

Market volatility intensified after the United States reinstated a naval blockade against Iran. At the same time, U.S. President Donald Trump proposed imposing a 20% special tariff on all commercial cargo passing through the Strait of Hormuz. Washington announced the controversial measure following a fresh round of military exchanges between U.S. and Iranian forces, further fueling uncertainty over global oil supplies.

Tim Waterer, Chief Market Analyst at KCM Trade, said the new U.S. sanctions and Iran's retaliatory actions have introduced significant new risks to global energy markets. He warned that although the Strait of Hormuz remains open, the increasingly hostile posture of both countries has cast serious doubt over the future stability of oil supplies.

The conflict has already slowed the movement of international oil tankers through the Strait of Hormuz. According to recent shipping data, tanker traffic through the strategic waterway has fallen to its lowest level in the past two months.

Priyanka Sachdeva, a market analyst at Phillip Nova, said the biggest concern for global markets is whether the physical flow of oil through the Strait of Hormuz can continue uninterrupted. She warned that any prolonged disruption to tanker traffic or export flows could trigger another sharp rise in crude oil prices.

Meanwhile, Yemen's Houthi rebels have launched a surprise missile attack on Saudi Arabia, creating additional risks to oil supplies from the Middle East's major oil-producing regions.