Oil prices jump over 6% as Middle East tensions flare

Oil prices surged more than 6 percent on Wednesday, July 29, 2026, following a renewed escalation of hostilities in the Middle East, including an attempted Iranian missile attack on U.S. forces and retaliatory strikes by the United States and Saudi Arabia. The sharp increase reversed a recent decline and ended hopes for a near-term de-escalation in the regional conflict.

The price jump was triggered by a series of military actions and bellicose rhetoric. Early on Wednesday, Iran launched ballistic missiles at a U.S. military installation in Jordan. U.S. Central Command stated all incoming missiles were successfully intercepted and that U.S. forces remained vigilant. In response, President Donald Trump vowed a forceful retaliation, warning that Iran was "going to get a beating" and that the United States would "hit them hard." Subsequently, the United States and Saudi Arabia conducted strikes against Iran-backed militias in Iraq, which groups said killed at least 20 fighters.

These events immediately impacted global energy markets. The international benchmark, Brent crude, climbed roughly 6.5 percent to trade near $88 per barrel, while the U.S. benchmark, West Texas Intermediate,...