Oil Prices Today, July 8, 2026: Crude Oil Prices Jump to $72.3 as US Strikes on Iran Stoke Fears of Supply Disruptions

Mumbai, July 8: Oil prices extended gains on Wednesday after the United States launched military strikes against Iran, escalating tensions in the Middle East and raising fresh concerns over disruptions to global crude supplies through the strategically vital Strait of Hormuz. The rally came after crude had already posted strong gains in the previous session, as investors rushed to price in heightened geopolitical risks.

US West Texas Intermediate (WTI) crude climbed 2.6% to $72.3 a barrel, while Brent crude rose 2.7% to $76.1 a barrel, extending Tuesday’s advance. Brent and WTI each gained around 3% on Tuesday after the U.S. revoked a general licence that had allowed Iranian crude sales following attacks attributed to Iran.

US military action reignites tensions

The latest spike followed a series of US military strikes on Iran in response to attacks on three commercial vessels transiting the Strait of Hormuz, according to US Central Command.

The US also revoked a general licence that had permitted Iranian crude sales. The twin actions heightened fears that the fragile truce between the two countries was beginning to unravel, injecting fresh uncertainty into global energy markets.

Both benchmarks extended their gains as fresh hostilities broke out between Iran and the US endangering their truce. Source: oilprice.com

Qatar accused Iran of carrying out a drone attack on its liquefied natural gas tanker Al Rekayyat, which caught fire in the engine room before the crew was safely evacuated. A Saudi-flagged crude oil supertanker was also reportedly damaged off the coast of Oman, although the exact cause remains under investigation. Iran has denied responsibility for the attacks.

Hormuz concerns return to the fore

The renewed conflict has once again turned attention to the Strait of Hormuz, one of the world’s most critical energy chokepoints, through which roughly one-fifth of global oil shipments pass.

Market participants fear that any prolonged disruption to tanker traffic could tighten global crude supplies and push oil prices even higher. Analysts noted that vessel movements through the strait remain significantly below pre-conflict levels, amplifying concerns over the reliability of supplies from the Gulf region.

Markets reassess supply outlook

The latest developments have prompted traders to reverse the bearish outlook that had emerged after hopes of easing tensions between Washington and Tehran.

Analysts said investors are increasingly building a geopolitical risk premium into oil prices, particularly after the US tightened sanctions on Iranian crude exports. Declining US crude inventories have added to concerns about tightening supplies, further supporting prices.

Implications for India

The sharp rise in crude prices could weigh on India’s economy if sustained, as the country imports more than 85% of its crude oil requirements.

Higher oil prices typically increase import costs, widen the current account deficit, fuel inflationary pressures and raise input costs for companies across sectors. They can also limit the Reserve Bank of India’s room to ease monetary policy if inflation accelerates.

Investors will closely monitor further developments in the Middle East, as any escalation in hostilities or disruption to shipping through the Strait of Hormuz could trigger another spike in global oil prices and heighten volatility across financial markets.

Source: oilprice.com