Oil prices surge after Iran war pause collapses

Global oil prices surged on Tuesday after a brief lull in the Iran war was shattered by fresh missile strikes, pushing Brent crude up $3.71 to $85.79 per barrel and U.S. benchmark crude up $3.78 to $83.04. The rebound followed coordinated interceptions by Jordan and U.S. forces of multiple Iranian ballistic missiles launched early July 29 against American targets in the Middle East. The attack shattered a three-day calm that had briefly eased tensions around the Strait of Hormuz, the critical chokepoint through which 20% of the world’s traded oil typically flows. Brent crude, the international benchmark, closed at $85.79, while U.S. benchmark West Texas Intermediate (WTI) settled at $83.04. The spike comes just days after oil prices had pulled back from two-month highs reached last week amid hopes for a ceasefire. Wall Street futures showed a mixed reaction ahead of the opening bell: S&P 500 futures gained 0.2%, Dow Jones Industrial Average futures slipped 0.3%, and Nasdaq futures rose 0.3%. The renewed conflict has reignited concerns over supply disruptions in a region that remains a linchpin for global energy markets. Elevated oil prices since the Iran war began in late February have already contributed to broader inflationary pressures across the economy. In equities trading, Generac shares jumped 4.3% in premarket action after the backup power supplier beat profit expectations and announced plans to ramp up production to clear a backlog of data center backup generator orders. Meanwhile, Procter & Gamble shares fell more than 3% after reporting flat organic sales in the fourth quarter, missing Wall Street expectations of 2% growth. Global markets remained volatile, with South Korea’s Kospi index plunging 6% as chipmakers like SK Hynix and Samsung Electronics sold off amid ongoing investor skepticism toward AI-related stocks. The Kospi had earlier fallen more than 8%, closing at 5,663.24, near its lowest level since early April. In Europe, Germany’s DAX ended flat, France’s CAC 40 dropped 0.6%, and Britain’s FTSE 100 gained 0.3%. In Asia, Japan’s Nikkei 225 fell 1.5% to 61,434.19, with chip equipment makers Tokyo Electron and Lasertec Corp. leading declines at 10.6% and 8.3%, respectively. The declines followed a major earthquake in southern Kyushu, which disrupted operations for automakers and manufacturers. Australia’s S&P/ASX 200 rose 1% to 9,038.60 after inflation data showed moderation, easing pressure on the central bank to hike rates. India’s Sensex added 1.1%, while Hong Kong’s Hang Seng gained 2% to 25,807.92. Taiwan’s Taiex fell 3.8%, and the Shanghai Composite reversed early losses to close up 0.4% at 3,830.02. The renewed volatility underscores the fragile state of global energy markets and investor sentiment as geopolitical risks and central bank policy loom large.