Oil Jumps After US Strikes Iran Over Hormuz Shipping Attacks
By Martin Lam
Last Updated: July 8, 2026
Summary
Oil prices surged nearly 3% on Wednesday following the US military's recent strikes on Iran, which were a response to attacks on commercial vessels in the strategically vital Strait of Hormuz. This escalation has reignited fears of potential disruptions in one of the world's key energy corridors.
Market Reaction
Brent crude futures rose by 2.8% to $76.25 per barrel, while US West Texas Intermediate crude also increased by 2.8% to $72.28. This price increase comes after a period of weakness attributed to OPEC+'s decision to raise output for August, indicating that traders are once again factoring in a risk premium for Middle Eastern oil supply.
Details of the Incident
The US Central Command reported that American forces targeted Iranian military installations after three commercial ships were attacked near the Strait of Hormuz. The strikes reportedly hit over 80 targets, including air defense systems and small boats operated by Iran’s Revolutionary Guard. In addition, the US revoked a license that had permitted Iranian oil sales under a temporary agreement aimed at de-escalating tensions and reopening shipping routes. Iran's Foreign Ministry condemned this action as a violation of the interim deal.
Impact on Shipping
One tanker caught fire due to the attacks, while two others were damaged but managed to continue their journeys without reported injuries. The oil price rally overshadowed the supply increase signal from OPEC+, which had agreed to raise output by a total of 188,000 barrels per day for August, marking the fifth consecutive monthly increase.
Future Outlook
Traders are now closely monitoring ship traffic through the Omani route, potential escalations from either Iran or US forces, and any changes to sanctions that could further impact Iranian oil availability. Key indicators to watch include insurance rates, tanker tracking data, diplomatic statements from the US and Iran, and OPEC+ compliance ahead of their next meeting scheduled for August 2.