Oil prices shot higher Friday after the United States and Iran exchanged new airstrikes, reigniting fears over the world’s most critical energy choke point.
Brent crude traded above $78 a barrel on July 12, while West Texas Intermediate hovered near $74, according to data compiled by Bloomberg. European natural gas futures also jumped as much as 2.7% intraday. The moves snap a brief period of calm that had followed a temporary ceasefire between the two countries.
The core of the new volatility: an explosive contradiction over the Strait of Hormuz.
Iran’s government said it was closing the waterway “until further notice.” Hours later, US Central Command flatly denied that and announced additional strikes aimed at guaranteeing freedom of navigation through the strait. About 20% of global oil and liquefied natural gas supply passes through that narrow channel.
Ship traffic has already collapsed. Only two tankers were recorded approaching the passage on July 12, a fraction of normal daily volume. The Joint Maritime Information Center noted that the southern shipping lane managed by Oman remained available, but that did little to calm traders.
The renewed military exchanges put a war premium back into crude. Prices had stabilized earlier as a temporary peace agreement raised hopes for increased Persian Gulf supply. Those hopes are now dashed.
The International Energy Agency warned that the conflict could derail plans to rebuild global oil inventories in the second half of this year. For crypto traders, the pattern is familiar: geopolitical shocks tend to tighten dollar liquidity and spur risk-off rotation, which historically pressures Bitcoin and other volatile assets.
Diplomacy, meanwhile, appears to be slipping further away.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the era of one-sided agreements was over. He argued that talks could resume only after the US first fulfilled earlier commitments on passage through the Strait of Hormuz and normalized Iranian oil exports. US President Donald Trump, by contrast, declared the ceasefire over – while also saying he remained willing to continue negotiations.
That mixed messaging leaves markets staring at an open question. For now, every oil tick will be watched as a proxy for broader risk appetite. The next verifiable update to watch: official shipping data from the Joint Maritime Information Center and any further statements from US Central Command on freedom of navigation operations. Until clarity arrives, the war premium in oil – and the volatility it injects into all risky assets – looks set to stay.
Oil Jumps as US-Iran Strikes Renew Fears Over Strait of Hormuz
US-Iran airstrikes escalate tensions, pushing oil prices higher amid fears of supply disruption through the Strait of Hormuz. This could increase market uncertainty and impact energy-linked assets.