{"id":64670,"date":"2026-07-12T18:38:18","date_gmt":"2026-07-12T22:38:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-energy-markets-shaken-as-u-s-iran-conflict-escalates-in-strait-of-hormuz\/64670\/"},"modified":"2026-07-12T18:38:18","modified_gmt":"2026-07-12T22:38:18","slug":"global-energy-markets-shaken-as-u-s-iran-conflict-escalates-in-strait-of-hormuz","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-energy-markets-shaken-as-u-s-iran-conflict-escalates-in-strait-of-hormuz\/64670\/","title":{"rendered":"Global Energy Markets Shaken as U.S.-Iran Conflict Escalates in Strait of Hormuz"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Brent crude <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> surged over 3%<\/strong> following a collapse of the month-old ceasefire between the <strong>United States<\/strong> and <strong>Iran<\/strong>, with prices briefly topping <strong>$78 per barrel<\/strong>.<\/li>\n<li><strong>The Islamic Revolutionary Guard Corps (IRGC)<\/strong> declared the <strong>Strait of Hormuz<\/strong> closed &quot;until further notice&quot; after launching strikes on commercial vessels, including the Cyprus-flagged <em>GFS Galaxy<\/em>.<\/li>\n<li><strong>U.S. Central Command (CENTCOM)<\/strong> retaliated with a third wave of strikes, hitting over <strong>140 targets<\/strong> (300+ total this week) to ensure &quot;freedom of navigation&quot; in the waterway.<\/li>\n<li><strong>Iraqi Prime Minister Ali al-Zaidi<\/strong> is scheduled to visit Washington on Monday to sign major <strong>oil and gas MOUs<\/strong> aimed at boosting production to <strong>7 million bpd<\/strong> and diversifying export routes.<\/li>\n<li><strong>Chilean copper production plummeted in May<\/strong>, with state-owned <strong>Codelco<\/strong> reporting an <strong>18.3% year-on-year decline<\/strong> amid falling ore grades and operational challenges.<\/li>\n<\/ul>\n<h2>Middle East Conflict Re-Ignites Oil Risk Premium<\/h2>\n<p>Global energy markets are pricing in a significant geopolitical risk premium as the <strong>Strait of Hormuz<\/strong> becomes the center of a renewed military confrontation. <strong>Brent crude (<a href=\"\/stock\/UKOIL\">UKOIL<\/a>)<\/strong> jumped <strong>3.2% to $78.68<\/strong> in early trading, while <strong>West Texas Intermediate (<a href=\"\/stock\/CL1!\">CL1!<\/a>)<\/strong> rose to <strong>$73.89<\/strong>. The surge follows the <strong>IRGC&#39;s<\/strong> decision to fire on commercial vessels, leading to the abandonment of at least one container ship after an engine-room fire.<\/p>\n<p>The <strong>United States<\/strong> has responded with overwhelming force, with President <strong>Donald Trump<\/strong> stating that the military &quot;bombed the hell out of&quot; Iranian assets overnight. <strong>CENTCOM<\/strong> officials emphasized that despite Iranian claims of a blockade, the waterway remains open to traffic under U.S. naval protection. However, <em>shipping insurance premiums have already spiked by 15%<\/em>, and several tankers have reportedly turned back from the region.<\/p>\n<h2>Iraq Seeks Strategic Energy Pivot in Washington<\/h2>\n<p>Amid the regional instability, <strong>Iraqi Prime Minister Ali al-Zaidi<\/strong> is traveling to Washington to finalize several high-stakes energy agreements. The visit is expected to result in the signing of memorandums of understanding (MOUs) with major U.S. firms, including <strong>Chevron (<a href=\"\/stock\/CVX\">CVX<\/a>)<\/strong> and <strong>Halliburton (<a href=\"\/stock\/HAL\">HAL<\/a>)<\/strong>. These deals are critical to Iraq\u2019s goal of reaching <strong>7 million barrels per day<\/strong> of production capacity by 2030.<\/p>\n<p>A key priority for the Iraqi delegation is the development of <strong>alternative export routes<\/strong>. Baghdad is increasingly concerned about its reliance on the <strong>Strait of Hormuz<\/strong>, which currently handles the vast majority of its oil exports. By partnering with U.S. development funds, Iraq hopes to transition its relationship with Washington from &quot;crisis management&quot; to a &quot;long-term economic partnership&quot; that secures its energy infrastructure.<\/p>\n<h2>Chile\u2019s Copper Output Hits Multi-Year Lows<\/h2>\n<p>While energy dominates headlines, the industrial metals market is facing its own supply crunch as <strong>Chile<\/strong>, the world\u2019s top copper producer, reported a sharp decline in output for May. According to <strong>Cochilco<\/strong>, production at <strong>Codelco<\/strong> fell <strong>18.3% to 106,300 tons<\/strong>. Major private mines also saw double-digit drops: <strong>Escondida<\/strong>, controlled by <strong>BHP (<a href=\"\/stock\/BHP\">BHP<\/a>)<\/strong>, fell <strong>17.6%<\/strong>, and <strong>Collahuasi<\/strong>, a joint venture between <strong>Glencore (<a href=\"\/stock\/GLEN\">GLEN<\/a>)<\/strong> and <strong>Anglo American (<a href=\"\/stock\/ANTO\">ANTO<\/a>)<\/strong>, dropped <strong>19.3%<\/strong>.<\/p>\n<p>Analysts attribute the decline to a &quot;structural supply crunch&quot; driven by <em>deteriorating ore grades and water scarcity<\/em> in the Atacama region. These figures have heightened concerns over a global copper deficit, as demand for the metal continues to rise for electric vehicle (EV) infrastructure and renewable energy projects. The market is now closely watching for a potential rebound in 2026 as new desalination plants and underground expansions at <strong>El Teniente<\/strong> come online.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Brent crude oil prices surged over 3% following a collapse of the month-old ceasefire between the United States 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