Oil Jumps Toward $80 as Strait of Hormuz Tensions Flare Again

Oil prices surged toward $80 a barrel as tensions around the Strait of Hormuz escalated once more, reviving fears about disruptions to a waterway that carries a large share of the world's seaborne crude. West Texas Intermediate spiked amid intensified confrontation between the United States and Iran over control of the strait and the reinstatement of a blockade, according to market commentary. The move made energy the best-performing sector on major North American equity benchmarks even as broader indices came under pressure from the geopolitical backdrop and questions about the sustainability of the artificial-intelligence-driven rally. The renewed volatility complicates the inflation picture for central banks: higher energy costs feed directly into headline inflation and had already pushed the US consumer price index up sharply earlier in the year. Analysts cautioned that the oil market remains highly sensitive to headlines, with prices having swung between the low $70s and higher levels through 2026 depending on the state of Middle East diplomacy. A durable easing of tensions could quickly reverse the spike, while further escalation risks keeping energy prices and inflation elevated.