Global oil prices surged more than three per cent in early Asian trading on Wednesday, July 29, 2026, after renewed military tensions between the United States and Iran sparked fresh concerns over possible disruptions to Middle East energy supplies.
Brent crude climbed 3.39 per cent to $86.94 a barrel, while US benchmark West Texas Intermediate (WTI) gained 3.67 per cent to $82.17 a barrel after the US military confirmed it had intercepted multiple missiles launched by Iran.
The development reignited fears among investors that further escalation could threaten crude shipments from the Gulf region, particularly through the Strait of Hormuz, a critical energy route responsible for transporting about one-fifth of global oil and liquefied natural gas supplies.
The latest market reaction comes amid an ongoing conflict between Washington and Tehran that began in late February 2026, with previous military exchanges already pushing energy markets into periods of sharp volatility.
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US President Donald Trump, however, signaled that diplomacy remained an option, saying efforts to end the conflict could still yield progress.
Speaking aboard Air Force One, Trump said: “I have a lot of patience… We’ll see what happens. I think there is a good chance that something could happen.”
Meanwhile, reports indicated that Oman and Iran were working towards an understanding that could help restore safe shipping through the Strait of Hormuz and ease pressure on global energy markets.
Analysts said oil prices would remain sensitive to developments in the region, with traders closely watching whether diplomatic moves can prevent further escalation or whether renewed hostilities could deepen fears of supply disruptions.