Oil prices jump after US and Iran escalate strikes in the Middle East

July 13, 2026 - 05:17

Brent crude jumped more than three percent in early trading on Monday, hitting $78.50 a barrel, as fresh military exchanges between the United States and Iran raised fears of a wider regional conflict. The spike came after a series of airstrikes over the weekend targeted Iranian-linked positions in Syria and Iraq, with Washington confirming it had struck facilities used by Tehran-backed militia groups. In response, Iran launched drone and missile attacks on what it called "strategic Israeli targets," though most were intercepted.

The escalation marks the most direct confrontation between the two countries in years. Analysts warn that any disruption to the Strait of Hormuz, a critical chokepoint for global oil shipments, could send prices even higher. "We are looking at a potential supply shock if the fighting spreads to shipping lanes," one energy strategist said. The rally also lifted US crude benchmarks, with West Texas Intermediate rising above $74 a barrel.

Markets are now watching for diplomatic moves, though neither side has signaled a willingness to de-escalate. The Biden administration has urged restraint but reiterated its commitment to defending allies in the region. Meanwhile, OPEC has not announced any emergency meeting, leaving traders to brace for more volatility. The jump in oil prices is already feeding into broader inflation concerns, with stock indexes in Asia and Europe edging lower on the news.