Oil Jumps to Near 88 Dollars as Tankers Reportedly Hit Mines Off Hormuz

Crude oil rose sharply as the war between the United States and Iran reached its seventh consecutive night. Brent futures advanced about 4.6 percent to settle near 88.10 dollars a barrel, and West Texas Intermediate, the main United States benchmark, gained about 4.5 percent to roughly 82.49 dollars, according to market reporting from July 17.

Iran's Islamic Revolutionary Guard Corps said two oil tankers exploded after striking mines in or near the Strait of Hormuz, and said separately that it had "stopped" four ships attempting to transit the waterway. The United States military rejected Tehran's account of the tanker explosions. The strait normally carries close to a fifth of the world's seaborne oil, and shipping traffic through it has fallen since the escalation began.

The overnight strikes hit bridges, water plants and energy infrastructure in southern Iran, cutting water to several villages, Al Jazeera reported. Iran in turn renewed attacks on Gulf states that host American bases, one week after a fragile ceasefire collapsed, according to Dawn.

The price move was concentrated in crude rather than in traditional stores of value. Gold held below 4,000 dollars an ounce and was on course to lose more than 3 percent for the week, pressured by a firm dollar and expectations that policy rates stay higher for longer. That divergence points to a supply-shock premium concentrated in energy rather than a broad shift into hard assets.