Oil prices surge after two UAE tankers attacked in Strait of Hormuz

Global oil prices surged on August 14, 2026, after two United Arab Emirates tankers were attacked while transiting the Strait of Hormuz, a critical chokepoint for roughly one-fifth of the world’s daily oil supply. Brent crude, the international benchmark, rose 24 cents to $87.31 per barrel, while U.S. benchmark crude climbed nearly 1% to $81.83. The attacks disrupted already volatile energy markets, compounding concerns over Middle East instability and fading hopes for a U.S.-Iran deal. The average U.S. gasoline price jumped to $4.08 per gallon overnight—92 cents higher than the same time last year—according to AAA. The Strait of Hormuz remains a flashpoint, with shipping traffic severely constrained and global supply chains under pressure. Meanwhile, U.S. stock markets showed mixed reactions: the S&P 500 edged 0.1% higher, the Dow Jones Industrial Average slipped 0.1%, and Nasdaq futures rose 0.1%. Analysts noted that easing inflation data from July had initially supported markets, but the oil shock threatened to reignite price pressures. Consumer spending has already softened, with retail sales data for August 14 expected to reflect reduced discretionary spending amid higher grocery and fuel costs. The Federal Reserve’s potential pause on interest rate hikes—supported by cooling inflation—now faces uncertainty due to rising energy prices. In equities, Reddit’s stock surged over 12% ahead of its inclusion in the S&P 500, while Applied Materials slumped after missing earnings expectations. European markets were mixed: the UK’s FTSE 100 fell 0.1% to 10,761.60, Germany’s DAX rose 0.7% to 26,476.21, and France’s CAC 40 dipped less than 0.1% to 8,654.97. In Asia, Japan’s Nikkei 225 gained 0.6% to 68,713.80, and South Korea’s Kospi jumped 2.4% to 6,977.94. Currency markets saw the U.S. dollar dip slightly against the yen and euro.