Oil Prices Surge After Iran Strikes U.S. Forces

Global oil prices climbed more than 3% on July 29, 2026, after Iran launched a missile barrage against American forces, ending a three-day pause in fighting. The United States military and Jordan's air defenses intercepted the missiles, including five intercepted by Jordan. In response, United States and Saudi Arabian forces carried out retaliatory strikes against Iranian-backed weapon sites in eastern Iraq.

Energy markets faced further instability as Houthi attacks reportedly shut down the Jazan refinery in Saudi Arabia, which has a daily capacity of 400,000 barrels. Brent crude futures rose nearly 4% to approximately $87 per barrel, while WTI futures increased to roughly $82 per barrel. These gains reversed a recent price decline fueled by hopes for a permanent agreement to reopen the Strait of Hormuz. However, vessel flows through the strait remain 80% to 85% below pre-war levels after Iran rejected an Omani proposal for a shared shipping management plan.