Oil Jumps 7% as Trump Threatens to Hit Iran Hard, WTI Above $84

Published Jul 29, 01:34 PM UTC

Oil prices surged over 7% on July 29, 2026, pushing WTI above $84 and Brent toward $90, after President Donald Trump threatened to 'hit Iran hard' following an attack on a US base in Jordan. The rally was compounded by Iran-backed Houthis considering transit fees on commercial shipping through the Bab el-Mandeb Strait and fresh US-Saudi strikes against Houthi positions in Yemen. The geopolitical premium comes hours before a highly uncertain Federal Reserve interest-rate decision, with markets divided on whether policymakers will hike rates for the first time since 2023. June's inflation had eased pressure on the Fed due to lower oil prices during a lull in the Iran war, but renewed hostilities threaten to reignite inflation. Saudi Arabia has begun rerouting crude exports through Egypt's SUMED pipeline to bypass the chokepoint.