Key highlights:
- Crude prices spike again after U.S.-Saudi strikes in Iraq
- This was due to concerns about supply disruptions after the attacks on Saudi infrastructure
- Iran rejected a proposal for shared control of the Strait of Hormuz
- Bitcoin also fell slightly as investors wait for the Fed interest rate decision
New tensions in the Middle East pushed global energy markets higher on Wednesday. This came after the U.S. and Saudi Arabia carried out military strikes on Iran-backed targets in Iraq.
This conflict lifted oil prices as traders worry that this could further disrupt supplies in key energy-producing areas. Stocks and crypto also reacted negatively as investors wait on the Fed’s decision later today.
Oil prices climb as Middle East tensions rise
Crude futures moved up during early trading on Wednesday. October Brent crude futures traded at $84.95 per barrel, up 3.50%. September West Texas Intermediate (WTI) crude pumped 3.86% to $82.32 per barrel.
The rally comes after an announcement from the U.S. Central Command (CENTCOM). They confirmed that American and Saudi forces carried out strikes against Iran-backed militant targets in eastern Iraq on July 28.
— U.S. Central Command (@CENTCOM) July 29, 2026
The operation targeted logistics and weapons sites used by Iran-aligned groups that had launched 30 drone attacks over the previous 72 hours. The military said those attacks were on U.S. troops and Saudi energy infrastructure but were unsuccessful.
The joint operation is the first time CENTCOM has announced a coordinated military action with Saudi Arabia.
Analysts at ING said the market had seen major selling over the previous three days. This makes the price sensitive to new geopolitical risks. They also noted that the attacks on Saudi facilities have caused concerns that supply disruptions could last longer.
One report also said that Saudi Arabia’s 400,000-barrel-per-day Jazan refinery may have shut down amid recent Houthi attacks.
Supply concerns grow as Strait of Hormuz stays under pressure
Tanker traffic moving through the Strait of Hormuz is still halted as negotiations continue. Iran rejected Oman’s proposal for a shared 50-50 management plan for shipping through the strait. Tehran is demanding greater control over incoming and outgoing vessels instead.
That decision increased fears that shipping delays could continue. This makes it harder for global markets to receive steady energy supplies.
Meanwhile, the Houthis condemned the U.S.-Saudi military operation. Iran, on the other hand, denied involvement in the drone attacks on Saudi facilities.
Iran’s Islamic Revolutionary Guard Corps (IRGC) later came out to claim responsibility for the attacks. CENTCOM said every missile was intercepted before causing damage.
Markets react as Bitcoin slips and investors await the Fed
The spike in oil prices affected other markets. Bitcoin fell as low as $63,596 before recovering to around $64,300. The coin had fallen as low as $62,747 in the past 24 hours.
The U.S. Dollar Index (DXY) fell to 101.2, which prevented a deeper fall in BTC. The benchmark 10-year Treasury yield remained around 4.6%.
Elsewhere, South Korea’s KOSPI index dropped another 11%. This extended its monthly decline to 35% as tech stocks saw major selling pressure.
Market attention is also focused on Wednesday’s FOMC meeting. There have been calls that the Federal Reserve could make an interest rate hike later today.
Source:: Oil Prices Spike Again After New U.S.-Saudi Strikes on Iran-Backed Forces