Oil Prices Surge to Six‑Week High Amid US‑Iran Tensions

Oil prices rose more than 1.5% on July 23, reaching their highest level in six weeks. Brent crude futures climbed to about $95‑$96 a barrel and U.S. West Texas Intermediate to $88, driven by an escalation of the conflict between the United States and Iran. The U.S. carried out a 12th consecutive night of air strikes on Iranian targets, and President Donald Trump warned he would destroy Iranian bridges or power plants for every Iranian attack on ships in the Strait of Hormuz. Iran’s Revolutionary Guards reported a tanker fire and declared the strait “completely closed” after U.S. actions.

Iran‑aligned Houthi rebels in Yemen opened a second front, threatening Saudi oil tankers in the Red Sea and announcing a naval blockade of Saudi Arabia. Several tankers were forced to reroute or were hit, raising concerns about a disruption to global energy supplies.

The price surge lifted energy‑related equities across Europe, with the Stoxx 600 up about 0.6% and the oil‑and‑gas sub‑index gaining 1.7%. French, Italian and German markets also rose, while technology stocks fell. Analysts noted that higher oil prices could revitalize inflation pressures and keep central banks on alert as they prepare upcoming policy decisions.