Symbolic imageOil Jumps About 8 Percent as Strikes Slow Hormuz Tanker Traffic
Brent crude rose by roughly 8 percent to about $91 a barrel on Wednesday after Iran's Revolutionary Guard fired ballistic missiles at US forces in Jordan and US and Saudi forces struck Iran-aligned groups in eastern Iraq. Tanker traffic through the Strait of Hormuz remains far below normal, and US crude inventories fell by 7.2 million barrels last week. Japan and other Asian buyers are turning to Canadian crude shipped through the Trans Mountain pipeline to cut their Gulf exposure.
What happened
Brent crude rose between 7.3 and 8.3 percent on Wednesday to about $90 to $91 a barrel, and US WTI gained roughly 7 percent to about $84.80, according to trading data cited by TASS and The National. Iran's Revolutionary Guard said it fired ballistic missiles at a US airbase and a Central Command facility in Jordan; US and Saudi forces had earlier struck Iran-aligned groups in eastern Iraq. CENTCOM called that a response to more than 30 drone attacks on US and Saudi energy infrastructure over 72 hours, and Saudi Arabia's Defence Ministry cited attacks on the kingdom's petroleum facilities. The Revolutionary Guard also said its naval forces hit three oil tankers in the strait, naming neither the vessels nor their flags. The jump followed a 16 percent three-day slide, crude's steepest since 2020, after Brent had topped $100 last week. US commercial crude stocks fell by 7.2 million barrels to 404.5 million in the week to July 24 (EIA), and the seven-day average of tankers in Hormuz stood at 11, far below last year, according to the IMF Port Watch tool.
The view from outside
The National (UAE) and Al Jazeera (Qatar) put the physical market first: subdued Hormuz traffic, falling US stocks, and Asian buyers scrambling for alternatives. Al Jazeera reports that Japan, which took more than 90 percent of its oil through Hormuz before the war, is set to receive its first Canadian cargo since 2025, chartered by Exxon Mobil for the refiner Eneos. Russia's TASS frames the move as market data alongside Washington's threat of powerful strikes and its stated readiness to keep negotiating.
What could happen next
Tokyo cut its growth forecast for this year to 0.9 percent from 1.3 percent because of higher oil prices, while India, Malaysia and Singapore have also returned to crude shipped via Canada's Trans Mountain pipeline, which has run near 90 percent of its 890,000 barrel-a-day capacity. The US strategic reserve is down to 307.7 million barrels, its lowest since 1983, after Washington pledged 172 million barrels within the IEA's 400 million barrel release. RBC analysts quoted by Bloomberg said they remain sceptical of a diplomatic breakthrough and expect missile, mine and drone risk to keep much of the shipping market on the sidelines. Canada's prime minister said he will not use oil as leverage in talks with Washington despite new US tariffs on Canadian goods.
Iran: The Revolutionary Guard says it struck US forces in Jordan over what it calls aggressive US actions and claims full control of the Strait of Hormuz, where it says it hit three tankers on an unsafe and illegal route.
United States: CENTCOM says it thwarted Iranian attacks and calls the strikes in eastern Iraq a strong response to more than 30 drone attacks on energy infrastructure, while Washington threatens powerful strikes yet says talks with Tehran continue.
Saudi Arabia: The Defence Ministry says the joint operation answered militia attacks on the kingdom's petroleum facilities and stresses that Riyadh does not seek escalation but will respond to any aggression.
Also involved