Oil prices rise as hostilities worsen in West Asia
Oil prices have risen as hostilities between the U.S. and Iran escalate, involving naval blockades and military strikes in the Strait of Hormuz. Market analysts warn that further instability in this region could lead to tighter supply and increased risk premiums.
Why it matters
Global energy markets are highly sensitive to geopolitical conflicts in the Middle East, directly impacting fuel prices and economic stability.
Oil extended gains on Wednesday (July 15, 2026) as U.S. President Donald Trump reimposed a naval blockade on all Iranian ports and Tehran launched strikes on U.S. infrastructure in the region.
Brent futures climbed 99 cents, or 1.2%, to $85.72 a barrel at 04.00 GMT. West Texas Intermediate futures gained 64 cents, or 0.8%, to $79.98 a barrel.
Oil prices closed up 2% at a one-month high on Tuesday (July 14, 2026) as attacks exacerbated a supply disruption in the Strait of Hormuz, through which about a fifth of the world's oil and liquefied natural gas passed prior to the beginning of the U.S.-Israeli war on Iran.
"While the physical oil market remains adequately supplied, any further escalation involving the Strait of Hormuz or additional sanctions on Iranian exports could quickly tighten market sentiment and add further risk premiums," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
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