Crude Oil Prices: WTI Jumps 6% as Middle East Tensions Lift Brent Above $100

Crude oil prices rose sharply on Thursday in global trading as renewed fighting in the Middle East increased concern over global supply routes. West Texas Intermediate gained 6.2% and settled at $92.19 per barrel, while Brent crude climbed 7% to $100.69. Brent crossed $100 for the first time since May as traders tracked attacks on Saudi oil tankers and disruption risks near major shipping channels. 

The United States Senate also rejected a measure that sought to limit military action against Iran without congressional approval. Higher energy costs pushed the national average gasoline price to $4.09 per gallon.

Middle East Supply Risks Drive Oil Rally

Houthi forces in Yemen claimed attacks on two Saudi oil tankers in the Red Sea and announced restrictions on Saudi shipments. The incidents raised concern around the Bab el-Mandeb Strait, which connects the Red Sea with the Gulf of Aden. Saudi Arabia has used the route as an alternative export channel when traffic through the Strait of Hormuz faces disruption.

Iranian forces have also tightened controls around the Strait of Hormuz during the conflict. The two waterways carry a large share of global crude and refined fuel shipments. Traders added a larger risk premium as tanker traffic slowed and shipping companies faced higher insurance, security, and rerouting costs. 

Core OPEC+ producers are preparing to raise September output by 188,000 barrels per day, according to Reuters. That increase offers some additional supply, but it arrives as traders assess whether regional transport disruptions could reduce available barrels. 

Brent has now gained nearly 40% since the Iran conflict began in February, while the latest five-day rise ranks among the strongest advances since March for major global crude futures contracts. 

Senate Vote Keeps Iran Policy Uncertain

The U.S. Senate rejected a war powers resolution on Thursday. The measure failed on a 47-49 vote. The proposal sought to require congressional authorization for continued U.S. military action against Iran. The result allowed the administration to continue its current operations without the restriction proposed in the resolution.

The House passed a separate Iran war powers measure by a 214 to 208 vote. The different outcomes showed continued division in Congress over military authority and the duration of the conflict. Oil traders watched the votes as renewed strikes and political uncertainty raised questions about the security of regional production facilities and shipping routes.

WTI Breaks Above Technical Resistance

WTI moved above its 100-day moving average near $89.71 during Thursday’s rally. The contract also tested the 50% Fibonacci retracement level around $93.26 and reached an intraday high near $93.50 before giving back part of the advance. The move placed crude above a technical level that had limited gains since June.

WTIUSD | Source: TradingView

The $89.71 area now serves as a nearby reference point for traders following the rally. A sustained move above $93.26 would place the June high near $97 back in view, while a drop below the 100-day average would weaken the latest advance. WTI traded near $67 earlier in July before gaining more than $24.

Gasoline Costs Add Inflation Pressure

Rising crude oil prices have already lifted fuel costs across the United States. Reports show a national average of $4.09 for regular gasoline on July 23, up 15 cents from the previous week. Most states now report average prices near or above $4 per gallon as refiners and retailers pass through higher crude costs.

Gas and Crude Chart | Source: X

Higher gasoline and diesel prices can raise expenses for transport, aviation, farming, and food distribution. Businesses may face larger fuel bills when moving goods by road, sea, and air. Central banks also monitor energy prices when assessing inflation, interest rates, and household spending conditions.