By Boluwatife Oshadiya | July 7, 2026, 10:05 AM
Key Points
- Brent crude climbed above $72.70 after attacks near the Strait of Hormuz and Ukrainian strikes on Russian energy infrastructure
- Geopolitical tensions raised concerns over potential disruptions to global crude supplies
- OPEC+ plans to increase August production limited further gains in oil prices
Main Story
Global oil prices rose on Tuesday as escalating geopolitical tensions in the Middle East and Eastern Europe renewed concerns over potential disruptions to global energy supplies.
International benchmark Brent crude gained about 1.05% to $72.75 per barrel, while US benchmark West Texas Intermediate (WTI) rose 0.8% to $69.32.
Investor sentiment strengthened after reports that Iran’s Islamic Revolutionary Guard Corps (IRGC) launched missile attacks on commercial vessels transiting the Strait of Hormuz, one of the world’s most strategically important oil shipping routes. According to reports citing US officials, Washington is considering military retaliation against Iranian targets, raising fears of a wider regional conflict.
Additional support came from Russia, where Ukrainian drone strikes reportedly targeted energy infrastructure in the western Siberian region of Omsk. Ukrainian authorities later claimed responsibility for striking the Omsk Oil Refinery, one of Russia’s largest refining facilities, with an annual processing capacity of 8.4 million tonnes.
The twin developments added a geopolitical risk premium to crude markets, although gains remained limited after OPEC+ announced plans to increase collective oil production by 188,000 barrels per day from August as part of the gradual rollback of voluntary production cuts.
“The group remains committed to maintaining market stability and retains the flexibility to adjust production depending on market conditions,” OPEC+ said following its latest meeting.
What’s Being Said
Energy analysts say any prolonged disruption in the Strait of Hormuz could significantly tighten global crude supplies, given that roughly one-fifth of the world’s oil passes through the strategic waterway.
Meanwhile, market participants believe OPEC+’s planned production increase should help offset some supply risks, although escalating geopolitical tensions continue to dominate short-term price movements.
What’s Next
- Investors will monitor the release of the US Energy Information Administration’s (EIA) July Short-Term Energy Outlook report.
- Markets are awaiting the minutes of the US Federal Reserve’s latest policy meeting for clues on future interest rate decisions.
- Traders will continue tracking developments in the Strait of Hormuz and Russia for any further threats to global energy supplies.
The Bottom Line: Geopolitical tensions have once again become the primary driver of oil prices, overshadowing concerns about slowing global demand. While additional OPEC+ supply may help contain price spikes, any further disruption to Middle East shipping routes or Russian refining capacity could quickly tighten global crude markets.
