Oil prices climbed on Friday following Iran’s announcement that its Islamic Revolutionary Guard Corps attacked two tankers attempting to transit the Strait of Hormuz under U.S. military escort. West Texas Intermediate crude futures rose over 1%, closing at $84.67 per barrel, while Brent crude also gained more than 1%, settling at $90.12 per barrel. This uptick came after a weekly drop exceeding 5%, sparked by early hopes of a reduction in Middle East tensions.

According to state media, four additional tankers turned back after the strikes, though the attacks have yet to be independently verified by U.S. and British maritime security agencies. Chevron CEO Mike Wirth highlighted that threats to oil supply are no longer confined to the Strait of Hormuz, citing recent developments such as a maritime embargo declared by Iran’s Houthi allies in Yemen against Saudi Arabia and attacks on LNG ships at Egypt’s Damietta port. Wirth emphasized the growing urgency and complexity of the situation as global inventories continue to decline.

ExxonMobil CEO Darren Woods stressed the critical importance of reopening the Strait of Hormuz, labeling it as the main artery for Middle East oil, essential for global economic growth. Both Exxon and Chevron reported significant profit increases in the second quarter amid rising oil prices. Meanwhile, escalating attacks in the Black Sea, targeting Russian energy infrastructure, further jeopardize Kazakhstan’s oil exports via the Caspian pipeline, adding to the regional instability affecting global energy markets.

Dan Yergin, vice chairman of S&P Global, described multiple global waterways—the Persian Gulf, Red Sea, Mediterranean, Black Sea, Baltic Sea, and Caspian Sea—as conflict zones impacting oil transportation. Refining capacity has been severely curtailed, with an estimated 6 million barrels per day offline, due in part to Russian diesel export halts following Ukraine’s attacks. These disruptions are causing worldwide economic strain, including rising diesel costs that affect sectors such as agriculture in countries like Brazil.