Why did crude oil prices jump 5% today? Here are key factors behind $79/barrel energy prices

Crude oil prices surged 5% to more than $79 per barrel (bbl) in the global market during the trading session on Monday, July 13, as investors traded on the backdrop of heightened uncertainty and rising tensions between the United States and Iran in West Asia.

Latest reports suggest that both sides have exchanged heavy missile and drone strikes over the weekend, and Iran has reportedly closed the key maritime trading route, the Strait of Hormuz, which is important for the global supply of crude oil.

Data showed that this move prompted the global benchmark, Brent crude oil futures, to surge 5% to an intraday high of $79.80 per barrel (bbl) on Monday, July 13, compared to the previous commodity market close.

With the series of escalations between the countries and no signs of a final peace agreement within the 60-day pre-set limit as part of the MoU deal, investors will continue to closely monitor the geopolitical developments.

Any further impact or escalation can further worsen the hopes of a near-term final peace deal, which is long-awaited to end the West Asia conflict, which has been raging since the first attacks back on February 28, 2026.

Oil prices snapshot

At 1:16 pm (IST), the Brent crude oil prices were trading 3.55% higher at $78.81 per bbl on Monday’s market, compared to $76.01 per bbl at the previous commodity market close, according to Investing.com data.

The data further showed that the oil prices have gained nearly 10% over the last five trading sessions, but the energy prices were down 9.7% in the last one month, and have lost 20% in the last three months.

While the US-based West Texas Intermediate (WTI) crude oil prices were trading 3.6% higher at $73.99 per bbl during the trading session on July 13, compared to $71.41 per bbl at the previous market close.

The exchange data also showed that the WTI crude prices jumped to an intraday high of more than $75 per bbl on Monday’s market.

Why did crude oil prices rise today?

Crude oil prices jumped 5% on Monday’s market after the United States on Sunday, July 12, carried out another fresh round of attacks on targets in Iran to further impact the country’s ability to attack international shipping vessels transiting the Strait of Hormuz.

“CENTCOM forces struck Iranian military air-defence systems, coastal radar sites, missile and drone capabilities, and small boats using U.S. fighter aircraft, naval vessels, one-way attack aerial drones, and one-way attack sea drones for the first time,” said the US Central Command in an official statement.

Sunday’s attacks on Iranian targets marked the fourth round of retaliatory attacks against the West Asian country amid a virtually non-existent ceasefire deal as America looks to crack down on the ability to attack ships crossing the Strait of Hormuz.

Latest media reports from CNN suggest that in response, locations in Qatar, Kuwait and Bahrain were attacked by Iran, as the country condemned the “aggressive” attacks from the United States.

Other key factors

Other key factors like the US President’s threat to Iran last week, along with Iran’s decision to deliver a “crushing response,” were impacting the overall investors' sentiment in the market amid the risk of another supply chain disruption.

Although a BBC report suggests that the United States have claimed that the Strait of Hormuz remains open despite Iran saying that the country has closed the key maritime trading route in response to the recent escalations.

This heightened sentiment and attacks of uncertainty have also put the ceasefire and peace deal between America and Iran at risk.

Last week, Trump said that the ceasefire was “over” and that he no longer wants to negotiate with the country in pursuit of diplomacy. He also threatened that the escalations will get “much worse” if the West Asian country continues attacking more ships passing through the Strait of Hormuz.