Oil settles up on renewed US-Iran, Hormuz hostilities

By the Editorial Team · Sunday, July 19, 2026

Oil prices surged to over $88 per barrel for Brent crude and above $82 for WTI on Friday due to escalating U.S.-Iran tensions and attacks targeting energy infrastructure, raising fears of disruptions in critical transit routes like the Strait of Hormuz. These developments have prompted shifts in export routes and sustained higher LNG prices in Asia and Europe, highlighting ongoing risks to global energy supply stability.

Oil prices rose sharply on Friday, reaching their highest levels in more than a month amid escalating tensions between the United States and Iran, which raised concerns about potential disruptions to global energy supplies. Brent crude settled at $88.10 per barrel, marking an increase of over 4% for the day, while U.S. West Texas Intermediate (WTI) crude closed at $82.49 per barrel. Both benchmarks recorded weekly gains of approximately 16%.

The recent surge in prices comes amid heightened hostilities in the region, with the United States conducting strikes on Iranian infrastructure. In response, Iran launched attacks targeting U.S. facilities across the Middle East and struck energy infrastructure in Kuwait. These developments have intensified worries about the safety and stability of shipping routes, particularly through the Strait of Hormuz, a critical chokepoint for global oil transit.

Oil flows through the Strait of Hormuz have sharply declined amid the conflict, and Tehran has also threatened to extend disruptions to the Red Sea, further exacerbating fears of supply interruptions. In reaction to these threats, Saudi Arabia has rerouted a significant portion of its crude exports to the Red Sea port of Yanbu, effectively bypassing the Strait of Hormuz and increasing export volumes through this alternate route.

The turmoil has also affected liquefied natural gas (LNG) markets in Asia and Europe. Asian spot LNG prices climbed for a fourth consecutive week, reaching nearly four-month highs. The benchmark price for September delivery to Northeast Asia rose to $20.10 per million British thermal units (MMBtu). Prolonged disruptions and delays in LNG shipments through the Strait of Hormuz have pushed back expectations for the resumption of normal flows until October or November.

Asian LNG prices remain supported by strong summer cooling demand and lower hydropower output, underscoring ongoing supply pressures in the region. European gas markets are similarly affected, with prices strengthening amid concerns over slower LNG imports and the ability to replenish storage facilities ahead of the winter season. While storage levels in Europe have inched higher, reduced import volumes and slower injection rates have maintained uncertainty about the continent’s gas supply security.

The unfolding conflict and its impact on key energy transit routes continue to contribute to volatility in global oil and gas markets, underscoring the region’s critical role in the world’s energy landscape.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.