Crude Oil Prices Rise Amid Escalating US-Iran Tensions
On July 29, crude oil prices surged as tensions between the United States and Iran escalated following an attack by Iranian forces on a U.S. base in Jordan. President Trump vowed to retaliate against Iran, intensifying fears of disrupted global energy supplies. The rise was also supported by unexpectedly low EIA crude inventories and reduced storage levels at Cushing. The Islamic Revolutionary Guard Corps claimed responsibility for the attacks and reported halting several tankers near the Strait of Hormuz—a critical oil transit route now under diplomatic deadlock. Iran rejected a proposal from Oman to share control over the strait, further complicating efforts to restore safe passage. The International Maritime Organization warned that navigating through the strait remains too dangerous. Meanwhile, Ukraine's continued drone attacks on Russian energy infrastructure have reduced Russia’s crude production and refining capacity, contributing to tighter global oil supplies.