Oil prices rise further on global market after attacks on energy facilities
Global oil prices surged again on Wednesday (July 15) as escalating tensions between the United States and Iran increasingly targeted energy infrastructures.
US President Donald Trump announced a new naval blockade on all Iranian seaports, prompting Iran to launch retaliatory attacks on US military installations across the Middle East. The renewed conflict has sent shockwaves through global energy markets.
According to Reuters, international Brent crude prices climbed for a second consecutive day, reaching their highest level since June 12, while US West Texas Intermediate (WTI) crude hit its highest level since June 15. Early trading on Wednesday showed WTI prices continuing to move higher.
The latest market data showed Brent crude rising by $1.46, or 1.72%, to $86.19 per barrel, while WTI crude gained $1.11, or 1.4%, to $80.40 per barrel.
On Tuesday (July 14), oil prices had already jumped by about 2%, reaching a one-month high. The primary driver behind the rally is the disruption of shipping through the Strait of Hormuz, one of the world's most important routes for transporting crude oil and liquefied natural gas (LNG).
Repeated attacks in the area have severely disrupted global energy supply chains. Before the current conflict, nearly one-fifth of the world's oil and LNG supplies passed through the strategic waterway, which is now reportedly completely closed.
The US military said early Wednesday that it had launched a new wave of airstrikes aimed at destroying Iranian military capabilities allegedly being used to attack commercial vessels transiting the Strait of Hormuz.
Meanwhile, Tehran stated that it had once again fully closed the Strait of Hormuz following the renewed outbreak of hostilities with the United States last week. As a result, the fragile ceasefire and memorandum of understanding signed between the two countries in June, after months of fighting, have effectively collapsed.
In an interview with Fox News, President Trump warned that he was "saving Iran's energy targets for last," signaling that the US military could eventually strike Iran's key energy infrastructure.
Iran has responded by intensifying attacks on US military positions across the region. The Iranian military claimed early Wednesday that it had successfully carried out a drone strike against US positions at Azraq Air Base in Jordan.
The Pentagon did not immediately comment on the claim. The Islamic Revolutionary Guard Corps (IRGC) also claimed responsibility for missile attacks targeting US weapons depots and military facilities in Bahrain and Kuwait.
The escalating confrontation between the two sides has increasingly drawn in the broader Middle East and neighboring countries, raising serious doubts about whether last month's diplomatic agreement can still deliver lasting peace.
Tim Waterer, Chief Market Analyst at KCM Trade, warned that if the conflict intensifies further and energy infrastructure in the Persian Gulf suffers significant damage, global crude oil prices could quickly climb above $100 per barrel. However, he added that if diplomatic efforts succeed in reopening the Strait of Hormuz, Brent crude prices could fall back to the $75–80 per barrel range.