Oil prices surged in early Asian trading on Monday, July 20, 2026, after the United States conducted strikes against Iran for the ninth consecutive night and a vessel caught fire in the Strait of Hormuz, a critical passage for global oil shipments.

Brent crude for September delivery increased by 2.72% to US$90.50 a barrel by around 1am GMT (9am Singapore time). The US benchmark West Texas Intermediate also rose 2.39% to US$84.46.

Britain's maritime security agency UKMTO reported that a ship was on fire in the strait, approximately 15 kilometers northwest of Oman. This incident, coupled with the ongoing US strikes, has heightened concerns about potential disruptions to oil shipments through the strait.

US President Donald Trump stated on Sunday evening that the US was hitting Iran "very hard" in retaliation for recent deaths of American troops in the Middle East. Additionally, Kuwait's military announced it was responding to an Iranian drone attack targeting its territory.

These developments have contributed to growing fears that renewed fighting in the Middle East could impact the flow of energy through this vital corridor.

Sources