Oil Prices Top $100 as U.S. and Iran Clash

Global oil prices surged past $100 per barrel on July 24, 2026, driven by an intensifying military conflict between the United States and Iran. The price spike follows 13 consecutive days of U.S. strikes against Iranian command centers and maritime infrastructure. In retaliation, Iran launched missile attacks against U.S. missile systems and fuel storage in Jordan and military positions in Kuwait.

Simultaneously, Donald Trump vowed to hold Iran responsible after Houthi militants attacked two Saudi tankers, the Encelia and the Layla, in the Red Sea. The Houthis declared a naval blockade of Saudi Arabian ports and the Bab el-Mandeb Strait, further tightening supply alongside the closure of the Strait of Hormuz. President Trump threatened a massive attack and stated that the U.S. would use seized Iranian funds to pay for damages to ships and cargo.

Supply constraints were exacerbated by suspected Ukrainian drone attacks on the Caspian Pipeline Consortium terminal on Russia's Black Sea coast, prompting Kazakhstan to reduce oil production. This volatility forced Saudi Aramco to reroute shipments through the Suez Canal and the Mediterranean port of Sidi Kerir. Despite the surge, prices dipped slightly late on July 24, with Brent falling below $97. The European Central Bank warned that these rising energy costs could force interest rate hikes to combat inflation, while the U.S. Strategic Petroleum Reserve hit its lowest level since 1983.