20.07.2026 06:50
The escalating tension between the US and Iran has also hit global markets. As energy shipments through the Strait of Hormuz were disrupted, Brent crude oil rose above $90, while experts warned that if the conflicts continue, prices could rise to as high as $150. The sharp increase in oil prices has reignited inflation concerns worldwide.
Asian markets started the week with sharp sell-offs, while Brent crude oil prices rose over 3% to surpass $90 per barrel. Thus, Brent crude reached its highest level since June, and US West Texas Intermediate (WTI) crude also climbed above $84.
TENSION SHOOK MARKETS
The main reason for the price increase was the re-escalation of military tensions between the US and Iran over the weekend. The US continuing airstrikes on Iran into the ninth day, and Iran increasing retaliatory actions against US allies in the region, has brought supply concerns back to the forefront in global energy markets.
SHIPPING DISRUPTED IN THE STRAIT OF HORMUZ
Ship traffic slowed significantly in the Strait of Hormuz, through which about one-fifth of the world's oil trade passes. According to Reuters data, only four ships transited the strait on Sunday, while a fire was reported on a vessel off the coast of Oman. The increased security risk in the region has further heightened concerns about global energy supply.
$150 WARNING
AMP Chief Investment Strategist Shane Oliver warned that if the Strait of Hormuz remains closed for a long period and the war expands further, oil prices could rise to as much as $150 per barrel to balance supply and demand. Barclays analysts, meanwhile, shared the view that markets are still not adequately pricing in the supply risks in the region.
INFLATION FEAR RETURNS
The sharp rise in energy prices is seen as a new risk in the global fight against inflation. Experts note that if oil prices remain at high levels, costs in transportation, production, and food—especially fuel—could increase, which may strengthen inflationary pressure worldwide once again.