Crude oil prices climbed more than 1.5% on Thursday, July 23, 2026, reaching their highest levels in over six weeks as escalating tensions between the United States and Iran raised concerns about global energy supplies, as per news reports.
Fresh military strikes and growing threats to key shipping routes increased fears of potential disruptions in crude exports.
Brent crude futures rose US$1.93, or 2%, to US$96 per barrel after settling at US$94.07 in the previous session. Meanwhile, US West Texas Intermediate (WTI) crude gained US$1.44, or 1.7%, to US$88.27 per barrel, extending the previous day's strong rally.
The US military launched its 12th consecutive night of strikes on Iran following President Donald Trump's warning that the United States would target Iranian infrastructure if ships in the Strait of Hormuz continued to face attacks. The renewed military action has significantly increased geopolitical risks across the Middle East.
Iran's Revolutionary Guards reported that an oil tanker caught fire after an explosion while attempting to navigate a route south of the Strait of Hormuz. According to Iranian officials, two additional tankers turned back, while the Guards claimed the strategic waterway remained under their control and was effectively closed during the ongoing conflict.
Adding to market uncertainty, Yemen's Iran-backed Houthi group announced a naval blockade targeting Saudi Arabia and threatened vessels transporting Saudi crude through the Bab el-Mandeb Strait. The group claimed responsibility for attacking two Saudi oil tankers, while maritime security reports indicated that the Saudi-flagged tanker Encelia was struck in the Red Sea.
The Houthis also stated that several vessels had altered their routes following warnings against entering Saudi ports, raising concerns that disruptions could extend beyond the Gulf and impact global oil supply chains.
Despite strong geopolitical support for oil prices, gains were partially tempered after the US Energy Information Administration reported a 2 million-barrel increase in crude inventories last week. Higher imports, weaker refinery activity and lower crude exports contributed to the stock build, signalling relatively comfortable domestic supply conditions.
Crude oil prices remain supported by escalating geopolitical tensions and growing threats to major shipping routes in the Middle East. However, rising US crude inventories may limit further gains as traders continue to monitor both supply disruptions and demand fundamentals in the coming days.
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Published on: Jul 23, 2026, 7:24 AM IST
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