Oil prices rise more than 3% on renewed U.S.-Iran tensions
Oil prices jumped more than 3% on Friday as President Donald Trump’s warnings over Iran and Iran’s foreign minister’s remarks revived fears of renewed conflict around the Strait of Hormuz.
Source: EnergyNow.com · July 21, 2026 at 6:55 PM · AI-assisted report
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KUALA LUMPUR, 22 JULY 2026 —
Oil prices jumped more than 3% on Friday as President Donald Trump’s warnings over Iran and Iran’s foreign minister’s remarks revived fears of renewed conflict around the Strait of Hormuz.
Market Impact
Brent crude futures rose $3.24, or 3.06%, to $108.96 a barrel by 10:49 a.m. CDT. U.S. West Texas Intermediate futures climbed $4.13, or 4.08%, to $105.03. Over the week, Brent gained 7.54% and WTI surged 9.7%.
Market analysts said the increase reflected a shift in sentiment after Trump said he was running out of patience with Iran and insisted that China agreed Tehran must not acquire nuclear weapons and must reopen the strait. Iran’s foreign minister Abbas Araqchi said Tehran had “no trust” in U.S. intentions and would only negotiate if Washington showed seriousness. He added that Iran remained prepared for both military action and diplomacy.
Commerzbank analysts said the tone between Washington and Tehran had “once again become more confrontational,” adding that hopes for a swift reopening of the Strait of Hormuz had faded. China’s foreign ministry struck a more restrained tone, stating that the conflict “has no reason to continue,” but offered no comment on Trump’s claim that Beijing was prepared to buy U.S. oil or that Washington might lift sanctions on Chinese firms that purchase Iranian crude.
Shipping data showed a modest increase in vessel traffic. Kpler reported 10 ships passed through the strait in the past 24 hours, compared with five to seven daily in recent weeks. PVM analyst Tamas Varga said the uptick was having a greater impact on sentiment than on physical oil balances.
Analysts warned of tightening physical markets. Phil Flynn at Price Futures Group said global oil reserves had been drawn down at a historic rate. “The margin for error is shrinking rapidly,” he said, adding that a prolonged closure of the Strait of Hormuz would tighten physical markets, risk refined product shortages and push prices higher in the coming weeks and months.
Saxo Bank’s Ole Hansen linked the price rise to stalled talks over the strait and continued Ukrainian attacks on Russian refineries. “Crude is trading higher on a combination of the Trump-Xi meeting doing little to deliver progress on the Strait of Hormuz and ongoing refinery losses in Russia,” he said.