Brent crude oil prices rose above $90 per barrel on Sunday, July 19, marking the first time prices have reached this level since mid-June. The price increase followed reports of escalating hostilities in the Middle East, including the deaths of three U.S. service members and recorded strikes on energy infrastructure in Kuwait.
The market shift comes as a ceasefire agreement between the United States and Iran continues to deteriorate. According to shipping data, tanker traffic through the Strait of Hormuz has slowed. On Saturday, Iranian Supreme Leader Mojtaba Khamenei accused U.S. President Donald Trump of violating the bilateral agreement and pledged a response from Iran and its proxies. President Trump told NewsNation he was unconcerned by the Iranian leader's comments.
Analysts tracking the energy market noted that previous "shock absorbers," such as government releases from the Strategic Petroleum Reserve and high commercial stockpiles, are beginning to erode. Additionally, refined product supplies are facing pressure due to a Russian ban on diesel exports following drone strikes on its refineries. As of Sunday, AAA reported the U.S. national average for gasoline was approaching $4 per gallon.