Brent Jumps to $79 as Iran Announces New Hormuz Closure — Fourth Such Declaration Since April

VG Markets · 2026-07-13T02:16:58Z
Brent Jumps to $79 as Iran Announces New Hormuz Closure — Fourth Such Declaration Since April

Oil prices rose on Sunday after the U.S. and Iran exchanged fresh strikes across the Gulf, with Tehran announcing that the Strait of Hormuz would be closed "until further notice." Brent crude approached US$79 per barrel, extending a weekly gain of 5.4%, while WTI traded near US$74. U.S. Central Command disputed the announcement, stating: "Iran does not control the strait. Traffic is flowing."

Latest developments:

  1. Iran struck Qatar for the first time since April and targeted locations in the UAE for the first time since May, expanding the geographic scope of recent exchanges.
  2. U.S. forces reported striking more than 300 Iranian targets over three consecutive nights.
  3. Tehran disabled a second commercial vessel on Sunday after a warning shot struck a ship on Saturday. An Indian national remains missing following an attack on the container vessel GFS Galaxy off the coast of Oman.

Developments surrounding the Strait of Hormuz: This is approximately the fourth time since the February 28 U.S.-Israel strike on Iran that Tehran has announced the closure of the Strait of Hormuz, with U.S. officials disputing the implementation on each occasion. The U.S.-led Joint Maritime Information Center has stated that the southern route via Oman remains open to two-way traffic. Vessel-tracking data has continued to provide additional information on shipping activity alongside official statements, with traffic declining during earlier confirmed disruptions before partially recovering following periods of de-escalation.

Market context:

  1. Around one-fifth of global seaborne crude oil and LNG shipments normally pass through the Strait of Hormuz.
  2. The United States revoked Iran's crude export license last Tuesday following earlier tanker attacks, adding to broader supply considerations.
  3. Brent prices remain below the peak levels recorded during the April conflict, while analysts note that shipping conditions may continue to be influenced by factors such as elevated war-risk insurance costs and mine-clearing considerations even if tensions ease.

Market participants will continue to monitor developments in shipping activity and regional security alongside trading in Asian markets as the new week begins.

Sources: Reuters, CNBC, Bloomberg, U.S. Central Command, Al Jazeera