Oil prices surge following renewed military hostilities in the Middle East

Oil prices experienced a sharp increase on July 29, 2026, following the resumption of military operations in the Middle East, ending a brief period of de-escalation. By 11:00 GMT, Brent crude for September delivery climbed 5.32% to $88.56 per barrel, while West Texas Intermediate (WTI) rose 5.02% to $83.23 per barrel. The volatility was triggered by reports of US strikes in northwestern Iran, while the US military stated it intercepted Iranian missiles and launched a joint operation with Saudi Arabia against pro-Iranian militias in Iraq.

Analysts from ING, including Warren Patterson and Ewa Manthey, noted that these developments undermine previous optimism regarding diplomatic progress. Markets had been bolstered earlier by comments from Donald Trump suggesting potential talks with Tehran, but the current military escalation has renewed fears regarding global crude supply stability in the Persian Gulf region.