Oil prices surge amid ongoing Iran conflict, gasoline hits $4.06 per gallon in U.S.

Oil prices continued their upward trajectory on July 22, 2026, as fighting between the United States and Iran persisted, pushing Brent crude up 3.3% to $94 per barrel. The international benchmark briefly touched $95 per barrel earlier in the day, marking its highest level in nearly six weeks. The surge comes as oil tankers remain unable to transit the Strait of Hormuz, a critical chokepoint for global oil shipments, where roughly one-fifth of all oil and natural gas trade typically passes during peacetime. The disruption has reignited inflationary pressures, threatening to reverse recent slowdowns in price increases that had exceeded economists’ expectations. Rising fuel costs are squeezing corporate profits and could force the Federal Reserve and other central banks to consider further interest rate hikes, potentially dampening economic growth and investment markets. In the U.S., the national average price for a gallon of regular gasoline jumped to $4.06, according to AAA, up from $4.004 the previous day and nearing levels last seen in May. GasBuddy projections suggest the average could climb to $4.10–$4.15 per gallon by the end of the day, while diesel prices are projected to rise from $5.13 to $5.25 per gallon in the coming days. The 10-year Treasury yield held steady at 4.63%, a sharp increase from 3.97% before the conflict escalated in late February, contributing to higher long-term U.S. mortgage rates. On Wall Street, stocks wavered as oil prices weighed on markets. The Dow Jones Industrial Average edged up 0.2%, while the S&P 500 fell 0.2% and the Nasdaq composite dropped 0.5%. AI-related stocks, which had surged in recent weeks amid optimism over artificial intelligence investments, saw renewed volatility as concerns grew over whether spending on AI infrastructure would deliver expected returns. Micron Technology, despite a weekly rebound, remained up 235% year-to-date but fell 1.6% on the day. Super Micro Computer surged 15.6% after forecasting stronger-than-expected profit margins for the quarter, though it cautioned that revenue would likely land at the lower end of its $11 billion to $12.5 billion forecast range. AT&T climbed 4.4% after beating profit expectations, while Philip Morris International rose 4.6% on stronger-than-anticipated earnings. GE Vernova, however, sank 6% after posting weaker-than-expected quarterly profits. Overseas, European markets showed gains, with London’s FTSE 100 up 1.6%, while Hong Kong’s Hang Seng fell 1%.