Crude oil surges 4% near $80 as US-Iran military strikes escalate
Synopsis
Iran's claim that the Strait of Hormuz is closed — rejected by US Centcom but unresolved on the ground — sent Brent crude surging toward $80 and Asian markets tumbling up to 6 per cent. With the fourth round of US strikes in a week and a collapsed ceasefire, the world's most critical oil chokepoint is at the centre of a rapidly escalating standoff.
Key Takeaways
Brent crude surged more than 4 per cent to near $80 per barrel on 13 July amid US-Iran military escalation.
WTI rose 4.55 per cent to $74.66 per barrel .
Iran reportedly claimed the Strait of Hormuz was closed; US Centcom rejected the claim and said it struck targets to ensure navigation freedom.
US forces conducted their fourth round of strikes on Iran in one week, targeting dozens of locations.
US President Donald Trump indicated the interim ceasefire and MoU with Iran were no longer valid.
Asian markets fell sharply, with Nikkei , Hang Seng , and KOSPI down up to 6 per cent ; Sensex and Nifty also opened lower.
Global crude oil prices surged more than 4 per cent on Monday, 13 July, pushing Brent crude close to the $80-per-barrel mark after fresh rounds of US military strikes on Iran stoked fears of a prolonged supply disruption across the Middle East. The sharp rally reflects deepening anxiety over the security of one of the world's most critical energy corridors.
How Far Prices Moved
International benchmark Brent crude climbed more than 4 per cent, or $3.28, to trade near $80 per barrel. US benchmark West Texas Intermediate (WTI) rose 4.55 per cent, or $3.25, to $74.66 per barrel. The simultaneous jump in both benchmarks underscores how broadly the conflict risk is being priced into global energy markets.
The Strait of Hormuz Flashpoint
Iran reportedly claimed that the Strait of Hormuz — through which roughly 20 per cent of global oil trade passes — had been closed until further notice. The US Central Command (Centcom) rejected that assertion, stating it had conducted further strikes specifically to ensure freedom of navigation through the strategic waterway.
On Sunday, US forces used precision munitions to strike dozens of targets across multiple locations in Iran, according to Centcom. The operation marked the fourth round of US military action against Iran within a single week. Centcom said the strikes were launched in direct response to Iranian attacks on a Cyprus-flagged container vessel.
Ceasefire Collapses, Diplomacy Continues
Market sentiment deteriorated further after US President Donald Trump indicated that the interim ceasefire agreement and Memorandum of Understanding with Iran were effectively no longer valid, according to market experts. Diplomatic negotiations between the two nations are, however, reportedly continuing.
Reports also indicated that Iran's Islamic Revolutionary Guard Corps (IRGC) again targeted commercial shipping, prompting US forces to intercept an Iranian cruise missile and an attack drone. This cycle of strike and counter-strike has raised fears of a conflict that could spiral beyond the current theatre.
Wider Market Fallout
The geopolitical shock rippled across global financial markets. Asian indices traded sharply lower, with Nikkei, Hang Seng, and South Korea's KOSPI plunging up to 6 per cent. Closer to home, Indian equity markets also opened in the red, with both the Sensex and Nifty trading lower on Monday morning.
This comes amid a broader pattern of energy-market volatility tied to Middle East tensions — a dynamic that has repeatedly tested global supply chains over the past decade. With the Strait of Hormuz at the centre of the standoff, any sustained closure, even partial, could trigger supply shocks far beyond the immediate region.
What to Watch Next
Energy analysts and traders will closely track any official statements from Centcom and Tehran on the status of the Strait, as well as the trajectory of diplomatic back-channels. A further escalation — particularly any confirmed disruption to tanker traffic — could push Brent well above the $80 threshold. Conversely, a credible de-escalation signal could trigger a sharp reversal in oil prices.
Point of View
And that uncertainty alone is worth several dollars on Brent. Four rounds of US strikes in a week is an extraordinary tempo; the fact that diplomatic channels are reportedly still open is the only circuit-breaker in sight. India is doubly exposed here: as a major crude importer, higher oil prices widen the current account deficit and rekindle inflation risk, while the equity market selloff compounds the pain. If Brent holds above $80, the Reserve Bank of India's rate-cut calculus for the rest of the year becomes significantly harder.
NationPress
13 Jul 2026
Frequently Asked Questions
Why did crude oil prices surge on 13 July 2025?
Crude oil prices surged more than 4 per cent on 13 July after fresh US military strikes on Iran — the fourth such round in a week — and Iran's reported claim that the Strait of Hormuz had been closed, raising fears of a major supply disruption in the Middle East.
What is the Strait of Hormuz and why does it matter for oil prices?
The Strait of Hormuz is a narrow waterway between Iran and Oman through which a significant share of the world's seaborne oil trade passes. Any disruption or closure of the strait can immediately tighten global oil supply and push prices sharply higher, as markets saw on 13 July.
Did the US confirm that Iran closed the Strait of Hormuz?
No. The US Central Command (Centcom) rejected Iran's reported claim that the Strait of Hormuz had been closed, stating it had conducted further strikes to ensure freedom of navigation through the waterway.
How have global financial markets reacted to the US-Iran escalation?
Asian equity markets fell sharply, with Nikkei, Hang Seng, and South Korea's KOSPI declining up to 6 per cent. Indian markets also opened lower, with both the Sensex and Nifty trading in the red on Monday.
What is the current status of US-Iran diplomatic negotiations?
Despite US President Donald Trump indicating that the interim ceasefire and Memorandum of Understanding with Iran were effectively no longer valid, diplomatic negotiations between the two countries are reportedly continuing, according to market experts.
