US-Iran Tensions Escalate, Driving Brent Crude Above $95 Amid Diplomatic Standoff and Nuclear Warnings

Geopolitical tensions in the Middle East have intensified, with the US and Iran exchanging threats and accusations, leading to a surge in international oil prices. Brent crude futures surpassed $95 per barrel for the first time in six weeks on July 22, 2026, as markets reprice supply risks. US Secretary of State Marco Rubio, speaking at the ASEAN Foreign Ministers' Meeting, reiterated the US commitment to diplomatic channels while accusing Iran of violating strait security consensuses. President Trump warned of strikes on Iranian nuclear facilities if construction resumes, prompting a swift response from Iran's Khatam al-Anbiya Central Headquarters, which stated any US attack would be a major escalation. The ongoing conflict has also disrupted LNG tanker flows through the Strait of Hormuz, raising inflationary risks in the Eurozone and contributing to US stock market weakness.