Oil Rises More Than 4% After Iran Strikes U.S. Forces Amid Renewed Geopolitical Tensions

VG Markets · 2026-07-29T02:33:20Z
Oil Rises More Than 4% After Iran Strikes U.S. Forces Amid Renewed Geopolitical Tensions

Brent crude rose 4.2% to $87.62 a barrel and WTI gained 4.1% to $82.49 late Wednesday after Iran launched another wave of ballistic missiles targeting U.S. forces in the Middle East, renewing market concerns over potential supply disruptions.

Latest developments

  1. Iran's Islamic Revolutionary Guard Corps launched multiple ballistic missiles at U.S. forces in the region. U.S. Central Command said all incoming missiles were intercepted.
  2. The strike followed recent comments from U.S. President Donald Trump after meeting Israeli Prime Minister Benjamin Netanyahu, suggesting talks with Iran could progress. Iranian officials said the country was not seeking negotiations.
  3. Saudi Arabia reported intercepting drones and missiles targeting oil facilities in its Eastern Province.
  4. According to ANZ analysts, Iran rejected an Omani proposal regarding shipping coordination in the Strait of Hormuz, leaving market participants closely monitoring conditions along the strategic waterway.

Market fundamentals

  1. API data showed U.S. crude inventories fell by approximately 3.3 million barrels last week, a development that may indicate relatively resilient demand ahead of official EIA figures.
  2. Markets are also monitoring reports that OPEC+ may pause planned production increases for three months beginning in October.

Market backdrop

The rebound followed an approximately 15% decline in oil prices over the previous three trading sessions, as geopolitical concerns had temporarily eased.

The latest regional developments have renewed market attention on geopolitical risks and their potential impact on energy markets.

For Southeast Asian market participants

With oil prices experiencing elevated short-term volatility, market participants are likely to continue monitoring developments in the Middle East, shipping conditions through the Strait of Hormuz, and upcoming supply data releases.

Sources: Reuters, U.S. Central Command, American Petroleum Institute, ANZ Research.