Oil Prices Top $100 Amid U.S.-Iran Military Escalation

Brent crude oil prices surged past $100 per barrel on July 23, 2026, following a series of maritime attacks and a breakdown in diplomacy between the United States and Iran. The spike followed attacks by Iran-backed Houthi rebels on two Saudi Arabian tankers, the Encelia and the Layla, in the Red Sea. The Houthis subsequently claimed to enforce a naval blockade of the Bab el-Mandeb Strait in retaliation for a Saudi missile strike on Sanaa International Airport.

Donald Trump responded by holding Iran responsible for the attacks and ordering the United States Central Command to conduct a 13th consecutive night of military strikes targeting Iranian radar and missile systems. Trump warned of a "massive attack" larger than any previous operation and announced that any damages to commercial ships or cargo in the region would be paid for using seized Iranian funds controlled by the U.S. Government. These military actions follow the collapse of a mid-June memorandum of understanding and the resumption of U.S. aggression on July 7, which included strikes on the Darkhovin nuclear power plant.

Iran responded with missile strikes on U.S. bases in Jordan and Bahrain and restricted vessel transit through the Strait of Hormuz, where flows dropped from 10 million barrels per day in early July to less than two million. Iranian Foreign Minister Abbas Araghchi vowed a "powerful and decisive response," while U.S. Secretary of State Marco Rubio stated that Iranian leaders were "not ready to make a deal." The conflict has resulted in 18 U.S. soldier deaths and over 400 wounded, while driving U.S. gasoline prices above $4 per gallon and fueling global inflation concerns.