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Home » U.S.-Iran rivalry threatens Strait of Hormuz supplies, causing oil prices to rise
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U.S.-Iran rivalry threatens Strait of Hormuz supplies, causing oil prices to rise

Editor-In-ChiefBy Editor-In-ChiefJuly 17, 2026No Comments3 Mins Read
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An oil tanker and cargo ship remain anchored off the coast of Port Sultan Qaboos in Muscat, Oman, on June 21, 2026.

Elke Scoliers | Getty Images

Oil prices rose on Friday as investors weighed rising tensions between the United States and Iran after the Iranian government vowed to target infrastructure in the region if President Donald Trump follows through on his threat to attack key facilities in the country.

Brent crude oil futures (for September delivery), the international benchmark, rose 0.7% to trade at $84.79 per barrel, unchanged from early trading.

Meanwhile, U.S. West Texas Intermediate futures for August delivery rose 1.1% to trade at $79.78, settling at their highest since June 15 on Thursday.

Both oil contracts have risen more than 11% so far this week and are on track to post their best weekly performance since late April.

US Central Command announced overnight that it had completed its sixth consecutive night of strikes against Iran, hitting dozens of military targets, including military logistics infrastructure and maritime capabilities.

Centcom said in a social media post that more than 50,000 military personnel are active across the Middle East, adding that they “remain vigilant, risk-taking and prepared.”

International benchmark Brent crude oil futures for September delivery rose 0.9% to trade at 85.01 per barrel, matching gains from early trading.

The escalation in the conflict comes as a fragile ceasefire agreed last month broke down, again disrupting energy flows through the strategically important Strait of Hormuz, which normally handles about 20% of global oil shipments.

Stock chart iconStock chart icon

Brent Crude Oil Futures and West Texas Intermediate Futures for the past six months.

President Trump said in an interview with Fox News on Tuesday that the US military would target Iranian infrastructure next week unless the two countries reach a diplomatic breakthrough.

In response, a spokesperson for Iran’s military high command warned in a statement posted on Telegram Thursday that if President Trump’s threat is carried out, “everything that remains intact – all infrastructure in the region – will be destroyed.”

Iran has asked Yemen’s Houthis to be prepared to shut down Red Sea oil routes if the United States targets Iran’s power infrastructure, Reuters reported on Thursday, citing three unnamed sources. CNBC could not independently verify this report.

Rystad Energy senior vice president Jorge León said in a note Friday that a limited agreement between Washington and the Iranian government remains the company’s base case, but confidence in its outcome has weakened.

He added that while the United States seeks lower oil prices ahead of November’s midterm elections, Iran is reluctant to give up economic incentives, and both sides still have strong economic incentives to avoid a complete breakdown in negotiations.

“The Iranian government is considering substantive economic measures, such as access to frozen assets and export exemptions, and does not want to give them up permanently,” Leung said.

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