Wednesday, July 29, 2026
Oil prices jumped on Wednesday after President Donald Trump said the United States would strike Iran in response to an attempted ballistic missile attack on American forces in the Middle East.
Brent crude futures, the global benchmark, rose as much as 7.2 percent to settle near $90.12 a barrel. U.S. West Texas Intermediate crude climbed about 6.6 percent to roughly $84.46 a barrel. The gains wiped out a brief decline earlier in the week, when markets had been pricing in hopes of de-escalation.
Speaking on Fox News, Trump said Iran “is going to get a beating” after the launch of multiple ballistic missiles by Iran’s Islamic Revolutionary Guard Corps. “We’ll be hitting them hard,” the president said.
U.S. Central Command confirmed the attack in a statement, saying IRGC forces “launched multiple ballistic missiles from Iran in an attempted surprise attack on U.S. forces based in the Middle East.” All the missiles were intercepted, Centcom reported, with no damage or casualties. Reports indicated one of the targets was a U.S. base in Jordan.
The episode broke a short pause in direct fighting between the United States and Iran. That lull had briefly eased pressure on oil markets. Analysts cautioned that optimism about a lasting diplomatic outcome had been premature.
“We remain exceedingly skeptical that we are on the brink of a major diplomatic breakthrough,” Helima Croft, head of commodity strategy at RBC Capital Markets, wrote in a note to clients, adding that the nuclear standoff that started the war five months ago is far from resolved and maritime traffic remains disrupted.
Tensions have been fueled by repeated Iranian attacks on commercial vessels in the Strait of Hormuz, drone strikes by Iran-aligned militias on Saudi energy infrastructure, and Houthi activity in the Red Sea. U.S. and Saudi forces carried out joint strikes on Tuesday against militia targets in eastern Iraq in response to more than 30 drone attacks over three days.
Commodity strategists said the renewed escalation reinforces supply risks. “Markets have jumped the gun on hopes of renewed peace, especially considering Iran’s insistence on controlling the Strait under any potential deal,” said Ryan McKay, senior commodity strategist at TD Securities. “We continue to see reduced flows and global tightening of the energy market as supportive of further upside in crude oil.”
With key Middle East export routes under pressure, traders remain focused on further military developments that could tighten global oil supplies.