Brent crude oil has surpassed $100 per barrel for the first time since May amid escalating Middle East conflict. Attacks by Iran-backed Houthi rebels on Saudi tankers in the Red Sea and threats over the Strait of Hormuz have fueled supply fears. In response, U.S. President Donald Trump has threatened to destroy Iranian infrastructure, sending global stock markets lower on concerns of wider economic disruption and inflation.
Strait of Hormuz conflict
- ▪The Houthi attacks threaten the Bab el-Mandeb strait, a key shipping route that handled about 5.4 million barrels of oil per day in the first quarter
- ▪Iran's Parliament Speaker Mohammad Bagher Ghalibaf stated that if Iran cannot sell its oil, "no one will sell oil" in the region
- ▪The Strait of Hormuz is the world's most important oil route, with about one-fifth of global oil supply passing through it
- ▪The price increase was triggered by attacks from Iran-backed Houthi forces, who struck two Saudi oil tankers in the Red Sea
Trump infrastructure threats
- ▪President Donald Trump is reportedly considering a "massive attack" on Iran, stating he is "close to making a decision."
- ▪U.S. President Donald Trump warned the U.S. will destroy one Iranian bridge or power plant for each attack on a ship in the Strait of Hormuz
- ▪President Trump also signaled that U.S. forces could target an under-construction Iranian nuclear site known as Pickaxe Mountain
Global economic impact
- ▪The rise in oil prices caused the S&P 500 to fall 1.2%, its worst loss in a month, and pushed the average U.S. gasoline price to $4.09 per gallon
- ▪Brent crude oil, the international standard, surpassed $100 per barrel on July 23, 2026, its highest price since May
- ▪U.S. Defense Secretary Pete Hegseth estimated in a Senate hearing that the U.S. had spent $37.5 billion on the war with Iran so far
Military strikes on Iran
- ▪The U.S. military has conducted strikes on Iran for 12 consecutive days, targeting aircraft hangars and drone storage sites
- ▪Iran’s Health Ministry reported that U.S. strikes over 11 days killed 53 people, including women and children, and wounded nearly 600
Iranian missile attacks
- ▪Missile alerts were also issued in Bahrain and the Saudi Arabian city of Dammam following Iranian attacks
- ▪Iran launched a missile attack on the Jordanian city of Aqaba, with Jordan's military intercepting four missiles and four drones
Diplomatic stalemate
- ▪An Iranian Interior Ministry spokesman said “diplomacy isn’t called off” and messages were still being exchanged, while another minister visited Pakistan to revive diplomacy
- ▪Negotiations between the U.S. and Iran are largely stalled, with President Trump stating the U.S. has "no interest in meeting" for talks
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