U.S.-Iran Clash Resumes After 6 Days...International Oil Prices Surge Again (Comprehensive)

U.S. Central Command Announces Resumption of Airstrikes
U.S. Crude Oil Inventories Fall to 43-Year Low

The United States and Iran have resumed their clash after six days. As Iran launched a preemptive attack and the U.S. military responded with retaliatory airstrikes, the exchange of hostilities is escalating. With military tensions in the Middle East rising again, Brent crude oil, the benchmark for international oil prices, has once more climbed above $90 per barrel. U.S. crude oil inventories have reportedly fallen to their lowest level in 43 years, raising concerns that a full-scale supply squeeze is underway. Experts predict that international oil prices will experience significant volatility for a while, as supply shortage fears expand in a market that had prematurely priced in hopes for renewed peace between the U.S. and Iran.

Trump: "We Will Beat Up Iran"...U.S. Airstrikes Resume After 6 Days

AP Yonhap News

On July 29 (local time), U.S. President Donald Trump, in an interview with Fox News, used strong language stating, "We will beat up Iran," and "We will strike them hard. They will get hit."

President Trump reacted so aggressively towards Iran because the previous day, the Islamic Revolutionary Guard Corps (IRGC) had launched a preemptive attack on a U.S. military base. On July 28, as a meeting between President Trump and Israeli Prime Minister Benjamin Netanyahu was underway, the Revolutionary Guard carried out a preemptive strike against a U.S. base in Jordan. While the IRGC has repeatedly carried out retaliatory attacks following U.S. airstrikes, this time it initiated the preemptive action, prompting the U.S. to respond forcefully.

The U.S. Central Command (CENTCOM), which oversees the Iran conflict, announced that it resumed airstrikes against Iran after six days. In a statement posted on the social network X, CENTCOM said, "Beginning at 8 p.m. Eastern Time, we commenced airstrikes against Iran," adding, "These airstrikes are a strong response to Iran's attempted attack on a U.S. base in the Middle East yesterday."

International Oil Prices Surge Across the Board...U.S. Crude Oil Inventories Hit 43-Year Low

AFP Yonhap News Agency

International oil prices soared across the board as U.S.-Iran clashes resumed. On this day, North Sea Brent crude for September delivery surged 7.91% from the previous session to $90.74 per barrel. West Texas Intermediate (WTI) for September delivery also closed at $84.46 per barrel, up 6.56% from the day before.

There are growing concerns about further sharp increases in oil prices as U.S. crude inventories have also plummeted. According to a Financial Times (FT) report, as of July 24, U.S. Strategic Petroleum Reserves stood at 307 million barrels—the lowest level since March 1983. This week, the operating rate of U.S. refineries reached 97%, and some areas in the Midwest even hit 100%, FT reported. 

Concerns are mounting that if the oil supply squeeze caused by the Iran conflict persists for an extended period, U.S. strategic reserves could fall into a critical situation. The operational lower limit for the U.S. Strategic Petroleum Reserves is estimated to be around 180 million to 200 million barrels. If additional releases occur after reaching this level, there could be infrastructure damage or even disruptions in pipeline operations.

Matt Smith, analyst at energy analytics company Kpler, warned, "U.S. commercial and strategic petroleum inventories have declined by about 20% since early April. Over the past four months, the U.S. has absorbed about 70% of the global onshore crude stock draw," adding, "By releasing strategic reserves and expanding exports, the U.S. has shouldered the burden of containing oil prices, but this rate of inventory drawdown cannot be sustained indefinitely."

Supply Shortage Fears Widen..."Hopes for Renewed Peace Were Premature"

As hopes for a peaceful resolution to the Iran conflict have significantly waned, concerns about the war expanding are growing instead. The longer the war drags on, the more severe the volatility in international oil prices is expected to become.

According to CNBC, Ryan McKay, senior commodity strategist at TD Securities, stated in a report that "Given Iran's insistence on maintaining control over the Strait in any agreement, markets appear to have reacted prematurely to hopes for renewed peace," adding, "We must continue to monitor reduced crude oil inflows and ongoing supply constraints in the global energy markets as factors supporting higher oil prices."

This content was produced with the assistance of AI translation services.