London, United Kingdom – Web Desk: Oil prices climbed to a one-month high on Tuesday, extending a sharp rally as escalating US-Iran military tensions fueled growing concerns over energy supplies through the critical Strait of Hormuz .
Prices Surge as Conflict Intensifies
**Brent crude futures for September delivery rose 2% to $84.98 a barrel on the ICE exchange in London**, after surging 9.6% in the previous session—the largest single-day gain since May 2020 . US West Texas Intermediate (WTI) crude climbed 2.1% to $79.79 a barrel .
The price spike follows the third consecutive night of US airstrikes on Iranian military targets in response to Iranian attacks on commercial vessels in the strategic waterway .
Strait of Hormuz Disruptions Worsen
Shipping traffic through the Strait of Hormuz has collapsed to a fraction of pre-war levels. According to tracking data, only 11 ships transited the waterway on July 12—the lowest since the ceasefire was signed on June 14—compared to average daily crossings of 130 vessels before the war began .
Iran’s Islamic Revolutionary Guard Corps has declared the strait closed, while Tehran has also targeted US military facilities in Bahrain, Kuwait, Oman and Jordan in retaliation for American strikes . The US Navy has maintained that an expanded southern route remains available, though traffic remains severely constrained .
$100 Oil Risk
Analysts warn that continued disruptions could drive prices substantially higher. Barclays has raised its 2026 Brent forecast to $100 per barrel, with a potential spike to $110 if disruptions persist . Kotak Securities suggests Brent could test $85-90 per barrel if hostilities continue, while Nuvama Institutional Equities warns a prolonged Hormuz closure could push prices to between $110 and $150 per barrel .
Meanwhile, US President Donald Trump has reimposed a naval blockade on Iran and indicated that countries benefiting from US efforts to secure shipping should reimburse Washington .
