Oil climbs for fourth straight session on Middle East supply fears

July 16, 2026 (MLN): Oil prices climbed for a fourth consecutive session on Thursday, supported by renewed geopolitical tensions after the United States launched fresh strikes on Iranian military targets, raising fears of supply disruptions in the Middle East.

Currently, Brent crude futures is down, 0.51%, at $84.52 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $0.27, or 0.34%, to $79.33 per barrel by [11:03 am] PST.

The latest advance followed U.S. attacks on Iran's coastal defense systems and missile installations on Wednesday, coinciding with Washington's decision to reinstate a naval blockade targeting Iranian ports.

In response, Tehran warned it could further disrupt regional energy exports, describing the conflict with the United States as an "existential war."

Market participants remain focused on the Strait of Hormuz, a strategic waterway through which roughly one-fifth of global oil and liquefied natural gas shipments pass. Any prolonged disruption in the region could tighten global energy supplies and drive prices higher, according to CNBC.

The resurgence in hostilities follows the collapse of a fragile ceasefire reached in June after months of fighting between Iran and the United States.

Iran could rely on its Houthi allies in Yemen to threaten shipping through the Bab el-Mandeb Strait, another critical maritime route linking the Red Sea to global trade lanes, potentially creating additional risks for energy markets.

Brent crude prices could rise above $110 per barrel in the fourth quarter if disruptions to Gulf oil exports persist.

However, the bank expects prices could retreat into the $60 range by the end of the year if geopolitical tensions ease and oil production recovers more quickly than anticipated.

Supporting the bullish sentiment, the U.S. Energy Information Administration (EIA) reported that U.S. crude oil inventories declined by 1.7 million barrels in the week ended July 10. However, the draw was smaller than analysts' expectations for a 2.6 million-barrel decline.

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