WTI Explodes Higher as Middle East Shipping Risks Multiply

By Editorial Dept - Jul 24, 2026, 6:00 AM CDT September WTI crude oil futures were trading at $92.31 late Thursday, up $10.54 or 12.89% for the week. The contract posted a weekly low at $79.58 before climbing to a weekly high at $92.31.This was not a normal risk-premium rally. WTI started the week with the Strait of Hormuz already impaired, then gained speed as the market realized Saudi Arabia’s alternate export route through the Red Sea was also under threat. By Thursday, traders were no longer pricing one damaged chokepoint. They were pricing a supply system with fewer ways to move barrels, higher freight costs, tighter fuel markets and no clear path to a ceasefire.Hormuz Risk Returned to the ForefrontThe first driver was the worsening U.S.-Iran conflict and the damage it was doing to shipping through Hormuz. Iran’s Revolutionary Guards said the strait was under its control and effectively closed while U.S. military action continued. That is a direct threat to one of the world’s most important oil transit routes.The market had seen tension around Hormuz before and initially treated it as a problem diplomacy could eventually solve. That view faded as U.S. strikes continued night after night and Iran answered with threats and attacks around regional shipping. By Thursday, the U.S. military had completed its twelfth straight night of strikes on Iran.A tanker fire near Oman added to the concern. Iran said the vessel was trying to follow a mined route in southern Hormuz, while two other… COMMUNITY MEMBERSHIP (FREE) GLOBAL ENERGY ALERT ($697 $279 PER YEAR) Breaking energy stories before they hit the mainstream media Top quality analysis from industry veterans Exclusive investment opportunities Digestible data breakdowns Geopolitical insights from our network of over 600 operatives Risk-free 30-day money back guarantee