Archive · 7 Aug 2026
Oil Extends Gains on Report of Iran Strikes in Hormuz
Oil is a fuel that many cars and machines need.
A lot of the world's oil travels through a narrow sea passage called the Strait of Hormuz.
An Iranian news agency reported that Iran attacked 'bad targets' in that passage.
When people heard this news, the price of oil went up.
The price of natural gas in Europe went up too, because people worried that fuel ships could be in danger.
Iran said it might stop ships from the United States and Israel from using the passage.
Iran also said it is close to making a deal with Oman about shipping lanes.
But Iran says the United States is not part of that deal.
Leaders are still talking, and no one knows yet if shipping will go back to normal.
Oil futures extended gains after an Iranian news agency reported Iran struck 'hostile targets' in the Strait of Hormuz, with US and global benchmark contracts climbing more than 1%.
European natural gas futures surged as much as 12% as traders priced in increased risks to gas tankers.
Iranian media reported Tehran plans to bar US and Israeli vessels from the waterway and require compensation from hostile countries.
Iran said a proposed shipping-lane pact with Oman is in its final stages but insists the US is not part of the agreement.
The UK Navy said a tanker heard two explosions in the strait, and Houthi militants in Yemen claimed they targeted a Saudi oil tanker in the Gulf of Aden.
- Who
- Iran, the United States, Israel, Oman, oil and gas traders, and the UK Navy.
- What
- Oil and natural gas prices rose after reports that Iran struck 'hostile targets' in the Strait of Hormuz and may restrict shipping through the waterway.
- When
- Thursday, in post-settlement trading; the underlying conflict is now around five months old.
- Where
- The Strait of Hormuz and Persian Gulf, with related incidents in the Gulf of Aden and the Black Sea.
- Why
- Because the reported strikes and Iran's plan to bar some vessels from the strait raised the risk that Persian Gulf oil and gas exports will remain restricted.
Iran's Stance
US and Traders' Stance
Strait of Hormuz access
Iran's Stance
Iran reportedly plans to bar US and Israeli vessels from the waterway and require compensation from 'hostile countries' before they can use it, keeping exports restricted in the near term.
US and Traders' Stance
The US says it is talking to Tehran, with President Trump saying he will 'see what happens' in negotiations; traders see a return to normalized flows as unlocking millions of barrels of disrupted shipments.
The Iran-Oman shipping pact
Iran's Stance
Iran says the deal on proposed shipping lanes is in final stages but insists the US isn't part of the agreement with Oman and that normalization depends on lifting an American blockade on Iranian ports.
US and Traders' Stance
Market participants doubt the pact will lead to a full-fledged resumption of shipments, and the White House did not respond to a request for comment on the pending deal.
- Oil futures
- US and global benchmark contracts climbed more than 1% in post-settlement trading Thursday
- European natural gas futures
- Rocketed as much as 12% on the Fars news agency report of strikes
- Reported trigger
- Iranian news agency report that Iran struck 'hostile targets' in the Strait of Hormuz
- Iran's reported policy
- Bar US and Israeli vessels from the waterway and require compensation from hostile countries
- Iran-Oman pact status
- Proposed shipping-lane pact said to be in final stages, with Iran insisting the US is not part of it
- Conflict duration
- Disruptions tied to a now five-month-old conflict
- UK Navy report
- A tanker heard two explosions while transiting the strait on Thursday
- Related attack claim
- Houthi militants in Yemen said they targeted a Saudi oil tanker in the Gulf of Aden