Key TakeawaysBoth Brent crude and WTI oil have climbed more than 11% over the past week, marking their strongest weekly performance since late AprilAmerican forces conducted their sixth consecutive night of military operations against Iranian targets, focusing on logistical and naval assetsTehran retaliated with strikes against U.S. installations across the Middle East, marking its inaugural direct assault in SyriaIranian officials have warned of potential destruction of regional energy infrastructure and reportedly coordinated with Yemeni Houthi forces regarding Red Sea shipping lanesLatest data shows U.S. crude inventories decreased by 1.7 million barrels, indicating tightening supply conditionsEnergy markets experienced significant upward momentum on Friday, with crude oil prices poised to record one of their most substantial weekly advances in recent months. The rally reflects mounting concerns over the ongoing military confrontation between Washington and Tehran.Brent crude futures advanced to approximately $84.79 per barrel during Friday trading. Meanwhile, U.S. West Texas Intermediate reached levels near $79.78 per barrel. Week-over-week, both primary oil benchmarks have surged more than 11%.Brent Crude Oil Last Day Financ (BZ=F)This rally represents the most impressive weekly gain for crude oil markets since the final weeks of April.Continued American Military Operations Against Iranian TargetsU.S. Central Command verified the completion of its sixth consecutive evening of aerial bombardment operations against Iran during Thursday night. The campaign targeted numerous military installations, encompassing logistical facilities and naval capabilities.Centcom disclosed that over 50,000 American military personnel are presently deployed throughout the Middle East theater. The command characterized its forces as “vigilant, lethal, and ready.”U.S. Central Command says its latest wave of strikes against Iran has been completed.CENTCOM said U.S. forces struck Iranian command centers, air defense sites, missile and drone capabilities, and coastal surveillance facilities to further degrade Iran's ability to threaten… pic.twitter.com/1NlgO7Bav9— Fox News (@FoxNews) July 16, 2026Tehran countered by launching retaliatory strikes against American facilities throughout the region on Friday morning. Notably, this offensive included Iran’s inaugural direct military action within Syrian territory.President Trump indicated earlier this week that American military forces would begin targeting Iranian infrastructure unless diplomatic progress could be achieved. Iran’s military leadership issued a stark warning in response, stating that any such actions would result in “all the infrastructure in the region will be crushed.”Persian Gulf Waterway Emerges as Primary Concern for Supply SecurityThe Strait of Hormuz has become the focal point for oil traders monitoring current developments. Approximately one-fifth of global oil shipments transit through this critical waterway.A delicate ceasefire agreement established in June has now disintegrated. Maritime traffic through the strait experienced a significant decline this week following the United States’ reinstatement of a naval blockade targeting Iranian ports.Reports indicate that Iran has requested Yemen’s Houthi forces to prepare for potential closure of the Red Sea oil shipping route should the U.S. target Iranian energy infrastructure. CNBC has not independently confirmed this intelligence.Analysts from Rystad Energy maintain that a constrained agreement between the United States and Iran remains their primary forecast, though certainty in this projection has diminished.Jorge León, senior vice president at Rystad, observed that both parties retain economic incentives to prevent complete diplomatic collapse. Iran stands to lose access to unfrozen financial assets and export exemptions that it seeks to preserve. Meanwhile, the United States aims to maintain lower energy prices in advance of November midterm elections.According to the Energy Information Administration, U.S. crude reserves declined by 1.7 million barrels during the week ending July 10, while gasoline stocks also decreased by 1.5 million barrels.Diplomatic initiatives persist, with Qatar, Egypt, and Pakistan reportedly engaged in mediation efforts notwithstanding the breakdown of the June ceasefire arrangement.The post Crude Oil Prices Jump 11% Amid Escalating U.S.-Iran Tensions Over Key Shipping Route appeared first on Blockonomi.