Brent Crude Surges to $88.26 as U.S. Strategic Reserves Hit 40-Year Low

According to MarketWatch, Brent crude oil surged to $88.26 by mid-July 2026 amid escalating Iranian military actions against vessels in the Strait of Hormuz and retaliatory U.S. air raids. Iranian missile attacks on regional American assets prompted the Pentagon response, raising geopolitical tensions in a critical shipping corridor.

U.S. strategic petroleum reserves plummeted to 316.5 million barrels—a 40-year low and less than half the authorized 714 million-barrel capacity—as of July 15, according to the report. The sharp drawdown has raised concerns about oil prices potentially crossing $100 per barrel for the first time since May, with some analysts warning of further volatility if Middle East tensions persist.