Oil prices rise over Iran’s threat to close Red Sea

Oil prices rose on Friday, July 17, 2026, after the United States and Iran stepped up attacks across the Gulf.

The two nations’ broken truce limited oil flows out of the ‌Strait of Hormuz, while Iran asked Houthi political and military organisation to stand ready to shut the Red Sea export route.

Brent crude futures rose 70 cents, or about 0.83%, to $84.93 a barrel at 0312 GMT, while U.S. West Texas Intermediate futures rose 81 cents, or 1.03%, to $79.76 a barrel, erasing losses from the previous session.

Both benchmark contracts have climbed nearly 12% this week, with Brent on ⁠track for a third consecutive weekly gain and WTI on pace for a second weekly gain.

“The potential threat of the Red Sea becoming another major supply disruption point is further complicating the global oil outlook,” said chief market analyst at KCM Trade Tim Waterer.

Rising petrol prices squeeze fuel importers

Waterer told Reuters that the “dual-risk scenario” was keeping a geopolitical premium embedded in both benchmarks.

For the first time since a memorandum of understanding paused fighting last month, the U.S. launched two major waves of air strikes in a single day on Wednesday, mostly at targets near Iran’s southern coast. It kept firing on Thursday.

Iran has countered with missiles and drones ⁠aimed at U.S. military bases in neighbouring states, including a barrage at a recently expanded air base in Jordan.