Oil prices jump 6% after US-Saudi strikes and Iran missile

Oil prices surged more than 6% on Wednesday, July 29, 2026, as renewed military strikes and threats in the Middle East shattered a brief ceasefire and reignited fears over global energy supplies. The sharp escalation involved joint U.S.-Saudi airstrikes, an intercepted Iranian missile attack, and the collapse of diplomatic efforts to secure a key shipping route.

West Texas Intermediate crude jumped nearly 7% to trade around $84 per barrel, while Brent crude approached $90. The rally followed a three-day decline and was amplified by a larger-than-expected draw in U.S. crude inventories. Markets reacted with heavy volatility, with the Dow Jones Industrial Average falling sharply.

The immediate trigger was a resumption of direct hostilities. U.S. Central Command confirmed that American and Saudi Arabian forces conducted joint precision strikes against Iran-backed militia targets in eastern Iraq. The operation, described as a response to over 30 recent drone attacks on U.S. forces and Saudi energy sites, marked the first publicly announced joint action of its kind between the two allies.

Shortly thereafter, Iran's Islamic Revolutionary Guard Corps launched ballistic missiles at a...