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Iran Conflict 2026
31JUL

Brent jumps 6% as oil ends its shrug

2 min read
09:24UTC

Brent crude rose about 6 per cent to roughly $78.67 a barrel on 8 July, its biggest jump since the war's opening spike in March.

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Key takeaway

Brent jumped about 6 per cent, its biggest since the war's March spike, pricing escalation it had spent months ignoring.

Brent Crude rose to about $78.67 a barrel on 8 July, up roughly 6 per cent, with West Texas Intermediate (WTI) at about $74.82, its sharpest single-day rise since the war's opening spike in March.⁠1 Brent is the benchmark that prices about two-thirds of internationally traded crude, so a move of this size feeds petrol, diesel and airline fares within weeks. It had sat near $73 after the Al Rekayyat strike alone.

Prices fell through every earlier shock of this conflict. Brent dropped to $71.99 through the June bombing of Qeshm Island, and the second quarter closed down about 30 per cent, the steepest quarterly fall since 2020. What moved the market this time was not one more incident but a strike and a retaliation landing in the same cycle, which raises the probability traders assign to an actual closure of the strait of Hormuz.

Saudi Arabia floated an expansion of a Red Sea pipeline to route crude around Hormuz, and tankers began making U-turns in The Gulf, according to trade reporting.⁠2 The thirty-five tankers that cleared the strait at pre-war rates on 2 July now move under a threat level the market has finally chosen to price. A Saudi pipeline, if pursued, is a multi-year structural hedge rather than a quick fix, and tanker diversions tighten Gulf supply just as OPEC+ was adding barrels.

Deep Analysis

In plain English

Brent Crude and West Texas Intermediate (WTI) are the two main global oil price benchmarks. Brent jumped about 6 per cent in a single day, its biggest one-day rise of the whole war, after the CENTCOM strikes and Iran's Gulf retaliation raised fears that tankers moving through the strait of Hormuz, the narrow waterway carrying roughly a fifth of the world's oil, could come under attack or be blocked. Saudi Arabia responded by floating a plan to expand a pipeline that would let its oil bypass Hormuz entirely by crossing overland to the Red Sea instead.

Deep Analysis
Root Causes

Oil traders price Hormuz risk through tanker insurance and freight rates as much as through headline events: P&I Clubs had already kept their Hormuz war-risk exclusion in force after the 7 July Al Rekayyat strike, meaning underwriters were signalling elevated risk before Brent moved.

Saudi Arabia's floated Red Sea pipeline expansion revives bypass capacity The Kingdom has held since the 1980s Petroline system; reviving it now signals Riyadh expects further volatility rather than a one-off shock.

What could happen next?
  • Consequence

    Saudi Arabia's Red Sea pipeline expansion, if pursued, would give Riyadh a durable hedge against future Hormuz disruption independent of any US or Iranian action.

  • Risk

    A sustained price spike above $80 would test whether P&I Clubs' war-risk exclusion pushes tankers to demand naval escort before transiting Hormuz.

First Reported In

Update #149 · The first thing Washington signed on Iran: a revocation

OilPrice.com· 8 Jul 2026
Read original →
Different Perspectives
United States (Joint Maritime Information Center)
United States (Joint Maritime Information Center)
The JMIC, the US-led naval reporting cell, rated the Hormuz threat "severe" in its 25 October advisory, as reported by gCaptain, and warned of possible renewed mining. Eight days earlier it found no substantiation for the Guards' mine claims, while US-facilitated transits ran at about 34 a day.
United Kingdom (CPS and Counter Terrorism Policing)
United Kingdom (CPS and Counter Terrorism Policing)
The CPS charged two men under the National Security Act 2023 over the RAF Fairford incident, and Counter Terrorism Policing said it believes the foreign intelligence service involved is Iran's, LBC reported. The case now runs through the courts; both men are charged, not convicted.
Aden and Yemen's recognised government
Aden and Yemen's recognised government
The Houthis told people to leave Aden airport, in the government-held south, before a missile fell there on 28 October, AFP reported, and police reported a second attack that afternoon. The fight between Riyadh and the Houthis is landing on the south's main civilian airport.
Qatar (mediators)
Qatar (mediators)
Qatar-led mediators put new terms to Iran this week, which an Iranian official called "ideas, not a proposal". Riyadh framed the Tehran meeting as support for Qatari and Pakistani mediation, keeping Doha at the centre of the indirect channel.
Korea Shipowners' Association
Korea Shipowners' Association
The association said the ships Iran listed were sub-chartered to an overseas oil company, not owned by Sinokor, carried no South Korean crew, and that Sinokor was unaware of the warning. South Korea's shipowners are contesting whose vessels the notice covers before it takes effect.
Kuwait (foreign ministry)
Kuwait (foreign ministry)
Kuwait summoned Iran's ambassador, Mohammad Toutounji, and handed him a protest note over the embassy's denial that its citizen took part in the alleged plot against Interior Minister Fahad Al-Yousef. Kuwait is answering through its courts and a diplomatic protest, citing international law and the UN Charter.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.