Oil Prices Surge as Trump Threatens Direct Strikes Over Strait of Hormuz Attacks

On Thursday, Brent crude futures for September delivery climbed 2% to $95.99 per barrel, while U.S. West Texas Intermediate advanced about 1.7% to $88.27 per barrel. The statement intensified market fears of a broader escalation that could further disrupt crude supplies.

CNBC

The latest flare-up stems from Iranian cruise-missile strikes on two tankers, including the VLCC Mobassa B (formerly Front Forth). The United Arab Emirates defence ministry identified the vessel as hit while transiting the strait; a Reuters photo of the ship in Rotterdam was taken on July 14, 2026. An unnamed Iranian military source told the state-run Tasnim News Agency that Iran would retaliate against U.S.–linked infrastructure and energy assets across the region if Washington carried out the threatened strikes.

CNBC

HSBC’s senior global oil and gas analyst, Kim Fustier, linked the price surge to the breakdown of the U.S.–Iran ceasefire that began to fray around July 8. The analyst noted that the core dispute centers on who controls passage through the strait and that increased traffic through the U.S.-managed Omani lane is unfavorable to Tehran.

CNBC

President Trump’s declaration set a clear condition: any Iranian missile, rocket, drone, or other weapon fired at a ship will be met with a U.S. strike on Iranian infrastructure. Iran’s unnamed military source warned of reciprocal attacks on regional bridges and energy facilities. Secretary Rubio dismissed Iranian overtures as insincere but reiterated a diplomatic stance. HSBC’s analysis highlighted the unresolved governance of strait navigation as the underlying driver of tension.

CNBC

• “Since 7-8 July, the ceasefire has frayed as Iranian attacks on vessels transiting the strait of Hormuz prompted U.S. retaliatory strikes,” — Kim Fustier, the bank's senior global oil and gas analyst

CNBC

• “The core issue remains unresolved: whether passage is administered, and by whom. In hindsight, the more traffic was rising through the US-managed Omani lane, the less this outcome suited Iran,” — Kim Fustier, the bank's senior global oil and gas analyst

CNBC