Oil climbs above $92 on escalating U.S.-Iran tensions

July 22, 2026 (MLN): Oil prices rose slightly in early trading on Wednesday as growing tensions between the United States and Iran heightened concerns over potential disruptions to global oil supplies.

Currently, Brent crude futures is up, 4.39%, at $92.26 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is up by $3.32, or 4.04%, to $85.40 per barrel by [09:55 am] PST.

The gains followed after U.S. forces struck targets in southern and western Iran, while Iran attacked U.S. facilities in Bahrain, Kuwait and Jordan.

The U.S. military said it launched fresh strikes on Iranian military targets for the 11th consecutive night, while Kuwait's army reported that its air defence systems intercepted Iranian drones on Wednesday, according to CNBC.

The continued exchange of attacks has intensified fears over the security of key energy shipping routes.

Yemen's Iran-backed Houthi movement has threatened to target vessels transporting Saudi crude through the Bab el-Mandeb Strait and declared a naval blockade of Saudi Arabia, raising concerns about further disruptions to oil exports.

The Bab el-Mandeb Strait has become increasingly important for Saudi crude shipments as traffic through the Strait of Hormuz has declined sharply following the collapse of the U.S.-Iran ceasefire earlier this month.

Meanwhile, U.S. Defense Secretary Pete Hegseth said Washington's military campaign against Iran has now cost approximately $37.5 billion, up nearly $8 billion from the previous public estimate.

On the supply front, data from the American Petroleum Institute (API) showed that U.S. crude oil and distillate inventories increased last week, while gasoline stockpiles declined.

Market participants are now awaiting official inventory data from the U.S. Energy Information Administration (EIA), due later on Wednesday

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