Oil Prices Surge as Iran Attacks Tankers in Hormuz Strait

Global oil prices surged 6% by July 8, 2026, after Iran launched missile and drone attacks against three commercial vessels in the Strait of Hormuz. The targeted ships included a Saudi-owned ultra-large crude carrier and a Marshall Islands-flagged Qatari LNG carrier, the Al Rekayyat. The escalation coincided with an overnight exchange of attacks between the United States and Iran, leading the Joint Maritime Information Center to raise the regional threat level to severe.

Prior to the attacks, oil prices had remained stable near $72 for Brent crude due to increased production from the United Arab Emirates and price cuts by Saudi Arabia. However, tensions spiked after President Donald Trump issued an ultimatum to reach a deal with Iran or "finish the job." In response, the Iranian foreign minister stated that final negotiations would not proceed if U.S. threats continued. The Islamic Revolutionary Guard Corps subsequently fired projectiles at ships, causing structural damage and fires, particularly near Limah, Oman.

Market volatility pushed Brent futures to $78.58 and WTI to $74.76. Nigel Green, CEO of deVere Group, warned that investors were under-pricing the risk of supply disruptions. To mitigate future risks, Saudi Arabia is considering expanding its crude oil pipeline to the Red Sea coast to bypass the Strait of Hormuz. Meanwhile, the United Kingdom Maritime Trade Operations advised all vessels to exercise extreme vigilance as deliberate hostile action remains likely.