The international benchmark Brent crude on Wednesday morning climbed 5% to surpass $95 a barrel for the first time in six weeks
Tensions are again rising between the U.S. and Iran, bringing traffic almost to a halt in the Strait of Hormuz and raising fresh risks of oil-supply shortages.
Oil prices were holding on to their gains after climbing to a six-week high on Wednesday morning after the U.S. struck Iran for the 11th night in a row and President Donald Trump warned that the U.S. will bomb Iranian bridges and power plants if Tehran shoots at ships in the Strait of Hormuz.
The Brent crude contract for September delivery (BRN00) (BRNU26) had risen nearly 5% to briefly top $95 a barrel on Wednesday morning before dropping to $93.10 in midday action. The global benchmark has risen for four consecutive sessions and was on pace for its largest four-day gain since April, according to FactSet data.
The West Texas Intermediate contract for September delivery (CL.1) (CLU26) was up 2.1% to $86.14, after reaching its session high of $88.61 earlier.
The latest move higher in oil prices comes as tensions rise between the U.S. and Iran, bringing traffic almost to a halt in the Strait of Hormuz and again raising the risks of oil-supply shortages.
Trump escalated his rhetoric against Iran on Wednesday morning, threatening to destroy bridges and power plants in the country if its forces continued to target ships in the Strait of Hormuz.
"From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran," the president said in a post on Truth Social.
Secretary of State Marco Rubio also said on Wednesday that the U.S. would continue to attack Iran as long as it tried to exercise control over the Strait of Hormuz. Speaking to reporters in Manila on Wednesday, he said Iran at this point was "not serious about talks."
U.S. Central Command said it completed an 11th night of strikes against Iran that targeted aircraft hangars, maritime capabilities and drone-storage sites to prevent Tehran from attacking commercial shipping through the key waterway. According to Iranian news agencies, explosions were heard in parts of southern Iran. The attacks came after Iran targeted U.S. military sites in Bahrain, Kuwait and Jordan on Tuesday.
"The Brent crude-oil price is higher by more than 10% this week, which is a major blow for global central banks and the new government in the U.K. that is trying to control the cost of living," said Kathleen Brooks, research director at XTB. "The issue for the global economy as we move through July is that high prices will squeeze families' cash in the second half of the year, which will have major economic consequences."
The remarks from Trump and Rubio on Wednesday also "undermine the memorandum of understanding, since Iran interpreted the original June agreement as giving them control of the strait, which is the U.S. does not agree with," Brooks told MarketWatch.
With the Strait of Hormuz effectively closed, threats from the Iran-backed Houthi militant group in Yemen this week to block Saudi Arabian ship traffic in the Red Sea also risk further choking off Middle East oil.
"For now the Red Sea remains operational, but global supply chains are increasingly coming under threat as escalations in the conflict heat up," she said. "This will keep upward pressure on global supply chains, and inflation risks are ramping up every day this conflict escalates."
Looking ahead, Jonathan Squires, CEO of Tapaas, a risk- and market-surveillance firm, said that oil markets are likely to "stay highly reactive" to geopolitical developments in the days ahead as the risk of strong volatility remains elevated, with any swings potentially affecting traders' positioning.
-Isabel Wang -Nora Redmond
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(END) Dow Jones Newswires
July 22, 2026 12:28 ET (16:28 GMT)
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