Global oil prices hit six-week high amid escalating US-Iran conflicts
Global oil prices rose by more than 1.5% as military exchanges between the United States and Iran continued to intensify, pushing crude prices to their highest level in six weeks. Fresh U.S. strikes on Iran and attacks by Yemen's Houthi rebels targeting oil tankers in the Red Sea contributed to the surge in the oil market on Thursday (July 23).
According to a Reuters report, benchmark international crude prices climbed by $1.93, or 2%, to reach $96 per barrel during early trading on Thursday, marking the highest level since June 8. In the previous session, prices had already risen by more than $3 to settle at $94.07 per barrel, just below the six-week high.
Meanwhile, U.S. West Texas Intermediate (WTI) crude gained $1.44, or 1.7%, to $88.27 per barrel after rising nearly 3% on Wednesday.
Hours after U.S. President Donald Trump issued fresh threats, the U.S. military announced it had carried out strikes on Iran for the 12th consecutive night. Trump had warned that every time Iran fired at a vessel in the Strait of Hormuz, the United States would destroy an Iranian bridge or power station. The latest developments have heightened the risk of a broader military conflict between Washington and Tehran.
Iran's Islamic Revolutionary Guard Corps (IRGC) said an oil tanker caught fire after hitting an explosion while attempting to pass through a mined route south of the Strait of Hormuz. Following the incident, two other tankers were forced to turn back.
The IRGC said the Strait remains under its control and is "completely closed" due to ongoing U.S. military activity in the region. It also warned that no tanker would be allowed to enter or leave the waterway without coordination with Iran.
In another escalation, the Iran-backed Houthi movement threatened to target Saudi oil tankers in the Bab al-Mandeb Strait and announced a naval blockade against Saudi Arabia, opening what it described as a new front in the conflict.
The Houthis claimed responsibility for military operations targeting two Saudi oil tankers. Maritime security reports indicated that a Saudi-flagged tanker named Anselia was attacked in the Red Sea.
The group also claimed it had forced around 10 vessels to turn back after warning them not to head toward Saudi ports. Reuters, however, said it was unable to independently verify those claims.
The Houthi naval blockade against Saudi Arabia in the Red Sea has raised concerns over disruptions to global energy supplies beyond the Persian Gulf. Separately, an IRGC spokesperson warned shipping companies on social media platform X that the southern route through the Strait of Hormuz had been mined.
Meanwhile, the U.S. supply outlook painted a different picture. The U.S. Energy Information Administration (EIA) reported that the country's crude oil inventories increased by 2 million barrels last week due to reduced refinery activity, lower crude exports, and higher imports. The increase contrasted with a Reuters survey in which analysts had expected inventories to decline by 1.1 million barrels.