RoydadNaft –  Oil prices climbed more than 2% on Tuesday, July 21, 2026, amid escalating military tensions between the United States and Iran and growing concerns over the security of oil supplies from the Middle East.

According to Roydad Naft, citing Reuters, Brent crude futures rose $1.89, or 2.12%, to $91.11 per barrel by 01:12 GMT. U.S. WTI crude futures gained $2.07, or 2.49%, trading at $85.30 per barrel.

This price surge occurred as military clashes between the U.S. and Iran entered a new phase. The United States conducted fresh airstrikes on targets in southern Iran, while Iran targeted U.S.-related positions and bases in Bahrain, Kuwait, and Jordan.

At the same time, reports emerged of damage to an oil tanker in the Strait of Hormuz, heightening concerns about maritime security and potential disruptions to oil exports through this strategic waterway.

Meanwhile, Yemen’s Ansarullah movement has threatened to expand its naval blockade against Saudi Arabia. This could jeopardize the kingdom’s oil exports via the Red Sea and further fuel market worries about global oil supply.

Despite the rising tensions, there are some signs of diplomatic efforts. Informed sources told Reuters that Iran has confirmed receiving a proposal for a 10-day ceasefire aimed at reviving the temporary June agreement, though no final deal has been reached yet.

Analysts believe that as long as the risk of disruption to oil tanker traffic in the Strait of Hormuz and the Red Sea persists, geopolitical risk will continue to support oil prices. Experts at SEB Research have also warned that continued confrontation between the U.S. and Iran could affect energy trade flows for an extended period, leading to sustained volatility and higher oil prices in global markets.