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Oil prices jump 7% on Middle East strikes

Oil prices climbed about 7% on Wednesday as renewed airstrikes in the Middle East heightened concerns over global supply disruptions, while U.S. government data showed domestic crude inventories fell to their lowest level in years.

July 30, 2026

Nicole Jao / Reuters

Oil prices jump 7% on Middle East strikes

Specialists work at a drilling rig at the Airankol oil field operated by Caspiy Neft in the Atyrau region, Kazakhstan, on April 20, 2026.

Pavel Mikheyev / Reuters

NEW YORK — Oil prices climbed about 7% on Wednesday as renewed airstrikes in the Middle East heightened concerns over global supply disruptions, while U.S. government data showed domestic crude inventories fell to their lowest level in years.


Brent crude futures rose $6.65, or 7.91%, to settle at $90.74 a barrel. U.S. West Texas Intermediate crude gained $5.20, or 6.56%, to close at $84.46 a barrel.


The United States and Saudi Arabia launched strikes on Iran-backed groups in Iraq on Wednesday, accusing them of carrying out drone attacks on Saudi oil facilities.


The strikes followed a U.S. military statement that it had prevented a surprise Iranian attack on American troops in the region. Iran said it had fired on ships in the Strait of Hormuz and at U.S. bases in Jordan.


In Egypt, explosions struck a natural gas loading port on the Mediterranean coast. British maritime security firm Ambrey said a U.S.-owned floating storage tanker at the site was hit by a drone.


"The market is rapidly pricing in the enhanced risk to supplies in the region once again," said John Kilduff, partner at Again Capital.


Oil prices gained further after President Donald Trump said in an interview with Fox News that the United States would carry out additional strikes against Iran.


The U.S. Treasury Department also announced another round of Iran-related sanctions targeting Tehran's efforts to generate revenue from the Strait of Hormuz, designating 10 entities and eight additional tankers.


Strait of Hormuz remains in focus


Iran has rejected Oman's proposal for joint regional management of the Strait of Hormuz, a senior Iranian official told Reuters on Wednesday.


"We believe Brent oil prices will continue to whipsaw in the $80-$100 per barrel range in the near term as the conflict ebbs and flows in the Middle East," said Suvro Sarkar, head of energy research at DBS Bank.


Only a limited number of commercial vessels have passed through the Strait of Hormuz this week. Five ships transited through the Bab el-Mandeb Strait on Wednesday, an alternative route for Saudi oil shipments to Asia, while 39 passed through on Tuesday. That was the highest number since July 19, before Yemen's Iran-backed Houthi militants announced a maritime blockade of Saudi Arabia.


The Houthis are also considering imposing fees on commercial vessels traveling through the southern Red Sea, according to regional sources familiar with the matter. China has held direct talks with the group to allow its tankers to pass through the area without being targeted, six sources said.


"From what I can see, their success in stopping flows through the Bab el-Mandeb is nowhere near as effective as in the Strait of Hormuz, though it appears there are more ships entering than exiting," said Scott Shelton, energy specialist at TP ICAP.


U.S. crude inventories hit lowest level since 2018


U.S. crude oil inventories declined last week as energy exports remained strong and domestic demand stayed firm, analysts said.


Crude stockpiles dropped by 7.2 million barrels to 404.5 million barrels, the lowest level since 2018, according to the Energy Information Administration. Analysts had expected a smaller decline of 1.3 million barrels.


Oil prices were also supported by expectations that OPEC+ may pause production increases for three months starting in October after the group completes its planned return of supply following voluntary output cuts.


-Reporting by Nicole Jao and Laila Kearney in New York, Stephanie Kelly in London, and Emily Chow in Singapore; Additional reporting by Arathy Somasekhar in Houston; Editing by Shri Navaratnam, Clarence Fernandez, Emelia Sithole-Matarise, Rod Nickel, David Gregorio, and Deepa Babington/Reuters

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