Oil jumps above $90/bbl following renewed US-Iran strikes

Brent crude’s price has leaped above $90/bbl once again as US and Iran resume bombing each other’s critical military and energy assets.

IMAGE: The Strait of Hormuz. Getty Images

The US Central Command (CENTCOM) resumed strikes on Iranian targets yesterday, effectively erasing some fragile hopes of de-escalation that had pushed Brent’s price lower in the previous week.

The US CENTCOM struck Iranian missile and drone facilities, coastal surveillance and maritime capabilities. “The strikes aimed to further diminish threats posed by Iran and its proxies to American forces, commercial shipping, and neighboring Gulf countries,” CENTCOM said.

As of 29 July, CENTCOM has redirected 20 commercial vessels, disabled two, and boarded two to prevent ships from entering or departing Iranian ports, it said on social media platform X.

Upward pressure on oil has mounted further following US President Donald Trump's warning in a Fox News interview that Washington is ready to “hit Iran hard”.

Iran targets its neighbours again

Tehran has continued to target US assets in Gulf nations, including Jordan and Egypt.

An Iranian drone hit a US-owned gas storage ‌tanker at the Egyptian port of Damietta, Reuters reported, citing maritime security firm Ambrey. Damietta is a key LNG terminal in Egypt. The fresh attack signals a further outbreak of conflict across the Middle East.

Iran's Islamic Revolutionary Guard Corps (IRGC) said it “targeted and stopped” three oil tankers attempting to transit the Strait of Hormuz, after the vessels ignored its warnings, Iranian media reported.

Meanwhile, Tehran has rejected Oman’s proposal to evenly share control of the shipping lanes in the Strait of Hormuz, Reuters reported, citing sources.

Oman, which lies exactly opposite to Iran across the critical oil chokepoint, proposed to divide the narrow lane evenly. However, Iran has rejected the proposal, seeking a complete and total control of the Strait of Hormuz, the report added.

Oman’s 50-50 shipping route plan “would facilitate an inbound route on one country’s side and the outbound route on the other’s,” two analysts from ING Bank noted. “Instead, Iran wants oversight of both inbound and outbound vessels,” they added.

Riyadh appeals for international support against Houthis

Saudi Arabia is seeking to ​form an international coalition to protect commercial shipping via the Bab al-Mandeb Strait into the Red Sea, amid a rise in attacks conducted by Yemen’s Iran-aligned Houthi militants, Reuters reported, citing sources.

The development comes after the militant group imposed a maritime blockade on Saudi Arabian exports via the Red Sea earlier this month.

So far, the Houthis have struck Saudi Arabia-linked vessels in the Red Sea and targeted Riyadh’s critical energy assets, including state-owned oil company Saudi Aramco’s refineries in Jizan and Yanbu.

Reports also indicate that Houthi militants are weighing toll fees on commercial vessels navigating the Bab al-Mandeb Strait.

Meanwhile, Saudi Arabia responded to the attacks in kind, striking Houthi military facilities at Yemen's Hodeidah port.

The recent turn of events has broken the market's short-lived peace and revived supply anxieties, as hopes for a diplomatic breakthrough dwindle.

By Aparupa Mazumder

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