Oil Jumps Over 4% After Strait of Hormuz Threats

Oil futures posted their biggest gain in three months on July 13, surging more than 4% after fresh threats in the Strait of Hormuz rekindled supply disruption bets. Brent crude settled near $82 a barrel. West Texas Intermediate traded around $78.40.

The move followed reports of naval activity near the waterway, through which roughly one-fifth of the world's seaborne oil passes. Traders said the escalation revived supply-risk premia that had eroded during weeks of relative quiet in the region.

No formal blockade has been imposed. The latest posturing still tightened flows in the physical market, traders added. Any sustained passage disruption would force tankers onto longer routes, raising freight costs and tightening crude oil supply further.

The weekly U.S. inventory report due Wednesday will show whether the price jump has altered producer behaviour. The market is also watching for diplomatic steps that could de-escalate the standoff. That risk, traders said, is what priced into the session's move.