Oil jumps on Iran strikes, Hormuz shipping incident

Oil prices experienced a significant surge in early Asian trading on Monday, July 20, as escalating tensions in the Middle East heightened concerns over potential disruptions to global energy supplies. The price jump was triggered by consecutive U.S. airstrikes against Iran and a separate incident involving a vessel fire in the vital Strait of Hormuz.

Brent crude for September delivery climbed 2.72% to $90.50 a barrel, briefly touching $91, its highest point since June. The U.S. benchmark, West Texas Intermediate, also saw gains, rising 2.39% to $84.46. These increases reflect growing market anxiety that renewed conflict in the region could impede oil shipments passing through the strategically crucial waterway.

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the US was hitting Iran "very hard"

The maritime security agency UKMTO reported that a ship caught fire in the Strait of Hormuz, approximately 15 kilometers northwest of Oman. The cause of the blaze was not immediately specified. Concurrently, U.S. President Donald Trump stated that the U.S. was retaliating "very hard" against Iran for the recent deaths of American troops in the Middle East. In a separate development, Kuwait's military announced it was responding to an Iranian drone attack targeting its territory, further contributing to regional instability.

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a ship was on fire in the strait