Oil surges over 3% as Middle East tensions raise supply risks

July 29, 2026 (MLN): Oil prices surged in Asian trading after escalating military tensions in the Middle East heightened concerns over potential disruptions to regional energy supplies.

Currently, Brent crude futures is up, 3.12%, at $87.21 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is up by $2.77, or 3.49%, to $82.03 per barrel by [11:03 am] PST.

Iran launched multiple ballistic missiles at U.S. forces stationed in the Middle East in what the U.S. Central Command described as an attempted surprise attack. The escalation comes amid a broader increase in attacks involving Iran-aligned groups across the region.

U.S. and Saudi forces also carried out strikes on several logistics and weapons facilities in eastern Iraq, according to CENTCOM. The strikes followed more than 30 drone attacks against U.S. and allied interests over the previous three days, according to CNBC.

Concerns over regional shipping routes also intensified after the U.K. Maritime Trade Operations Centre reported suspicious activity in the southern Red Sea. The agency said the master of a tanker heard an explosion while the vessel was transiting the area.

Additional supply concerns have surfaced following reported Houthi attacks on Saudi oil infrastructure, with potential strikes on production, storage and port facilities threatening energy flows and putting further pressure on regional supplies.

Oil’s rally was also reinforced by a more hawkish tone from Federal Reserve Chair Kevin Warsh at his first FOMC meeting, with traders divided over the central bank’s upcoming interest-rate decision.

The combination of heightened geopolitical risks, threats to energy infrastructure and uncertainty over U.S. monetary policy has added fresh volatility to global oil markets.

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