Oil prices rose more than 4% on Monday, July 13, after renewed military clashes between the United States and Iran increased concerns about global energy supplies.
Brent crude futures gained $3.10, or 4.08%, to $79.11 a barrel. U.S. West Texas Intermediate (WTI) crude rose $2.95, or 4.11%, to $74.36 a barrel.
The sharp increase came after both countries exchanged military strikes over the weekend, raising fears that oil shipments through the Strait of Hormuz, one of the world’s busiest energy routes, could be affected.
The U.S. Central Command said American forces carried out another round of airstrikes against targets in Iran. In response, Iran’s Revolutionary Guards (IRGC) claimed they launched attacks on U.S. military bases in Kuwait and Bahrain.
Iran also announced that it had closed the Strait of Hormuz, a key shipping route that carries about one-fifth of the world’s oil supply. However, U.S. President Donald Trump disputed the claim, saying the waterway remained open to commercial shipping.
The growing tensions also affected global financial markets. U.S. stock futures moved lower as investors reacted to the conflict and prepared for a busy week of corporate earnings.
Asian stock markets also declined. Japan’s Nikkei 225, South Korea’s Kospi, mainland China’s CSI 300, and Australia’s S&P/ASX 200 all closed lower. Hong Kong’s Hang Seng Index was the only major market to post gains.
Market analysts said investors remain concerned about the possibility of supply disruptions if tensions continue to rise in the Middle East.
At the same time, investors are watching the upcoming earnings reports from major U.S. companies, including JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, Wells Fargo, Netflix, Johnson & Johnson, and United Health.
Analysts expect strong second quarter earnings, while technology companies are expected to remain in focus as businesses continue investing in artificial intelligence.
