Oil Prices Spike After Iran Launches Surprise Attack on U.S. Forces -- Barrons.com

By Patrick O'Donnell and Anita Hamilton

Oil prices settled higher Wednesday after President Donald Trump said the U.S. was going to to be striking Iran "very hard" following reports of a drone attack that set fire to a U.S.-owned liquified natural gas carrier at Egypt's Damietta port.

Prices were already rising earlier in the day in response to the U.S. military's interception of Iranian ballistic missiles aimed at American forces in Jordan. Shortly after that attack, the U.S. and Saudi Arabia launched strikes in Iraq against Iran-backed groups that the Islamic Revolutionary Guard Corps previously directed to attack American troops and Saudi energy infrastructure.

The escalation in hostilities hit market hopes that the vital Strait of Hormuz waterway would reopen. Trump's upbeat tone on possible negotiations earlier in the week, combined with a pause in hostilities, had lowered crude oil prices by nearly 18% from Friday through Tuesday.

Brent crude, the global benchmark, settled up 6.8% to $88.09 a barrel. West Texas Intermediate, the U.S. standard, rose 6.6% at $84.48.

"These developments throw cold water on the idea of a swift de-escalation in the Persian Gulf," analysts at ING said. "Clearly, with Saudi oil infrastructure increasingly targeted, the risk of more prolonged supply disruptions grows."

The shares of oil majors were also rising after the military escalation in the Gulf region. ExxonMobil stock was up 2.5% at $156.85, Chevron was rising 2.6% at $192.34, while Occidental Petroleum was up 4.1% at $56.12.

Write to Patrick O'Donnell at patrick.odonnell@barrons.com and Anita Hamilton at anita.hamilton@barrons.com

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July 29, 2026 16:21 ET (20:21 GMT)