Brent crude oil prices rose 1.2% to near $88 a barrel on Friday, posting a nearly 24% gain in July, as escalating geopolitical tensions between the United States and Iran disrupted global energy markets. The surge follows the interception of Iranian drone attacks by Kuwait’s armed forces on Saturday, which targeted "vital facilities" and caused material damage from falling shrapnel, according to Major General Saud Abdulaziz Al-Otaibi, spokesman for the Ministry of Defense. No injuries were reported in the attack.

The price movement reflects growing concerns over global oil supplies as President Donald Trump weighs new military actions against Iran. Axios reported that the Trump administration is considering striking energy targets in Iran within the next few days, though no final order has been issued. CBS separately reported that potential targets include oil refineries and power plants, which would mark a significant escalation in the military campaign aimed at forcing Tehran to agree to U.S. terms in ongoing ceasefire negotiations.

Geopolitical Escalation

Efforts to reach a lasting peace have stalled, with both sides accusing each other of breaching a mid-June interim ceasefire agreement. Central Command (CENTCOM) announced the first round of strikes against Iran on Wednesday, describing it as a response to attempted Iranian attacks on U.S. forces in the Middle East. Trump cast doubt on continued talks during a Cabinet meeting, stating, "We’ll be hitting them very hard," and warning that Iran would eventually say it could not take the pressure anymore.

The conflict may also involve the Israeli military for the first time in weeks, which Axios reported could trigger Iranian missile attacks on Israel. Meanwhile, Mohammad Bagher Zolghadr, secretary of Iran’s Supreme National Security Council, warned that continued U.S. naval blockade and escalation would not only tighten the lock on the Strait of Hormuz but also close other strategic chokepoints.

Shipping Disruptions

Iranian efforts to disrupt shipping through the Strait of Hormuz have intensified. Bloomberg reported that the Gaslog Shanghai LNG tanker, carrying a shipment from Qatar, was struck by a projectile while transiting the strait. Security consultancies Vanguard Tech and Marisks identified the vessel, while the UK Maritime Trade Operations (UKMTO) had earlier alerted that a vessel was struck off the Omani coast. Another tanker reported seeing an explosion in the water nearby but sustained no damage.

Strait of Hormuz crossings fell 77% day-on-day to just five vessels, with all transits concentrated through the Iranian route, according to ship-tracking firm Kpler. The U.S. has maintained its maritime blockade against Iran to prevent exports of oil and refined products. As of July 31, CENTCOM stated it had redirected 30 commercial vessels, disabled two, and boarded two to ensure compliance, while permitting nearly 30 ships to pass for humanitarian aid. Despite claims by Iran that it attacked two tankers under U.S. escort, Western maritime authorities have not confirmed the incident, and CENTCOM affirmed the strait remains open to commercial transit.

Radio host Alex Jones has publicly called for the impeachment of President Donald Trump or his removal under the 25th Amendment, asserting that the administration’s conduct of the U.S. conflict with Iran violates constitutional limits on war powers. In a live broadcast on X on Tuesday, July 28, 2026, Jones argued that Congress must intervene to stop what he described as an unauthorized escalation toward a broader war, stating, "This is absolutely out of control." The stakes for market and political stability are high as calls for constitutional review intensify amid escalating military actions in the Middle East.

Jones specifically targeted the fiscal 2027 National Defense Authorization Act (NDAA), labeling Trump’s support for the legislation as "impeachable." He claimed the administration is preparing for a "massive ground invasion" and noted that draft preparations are underway. "They’re supposed to authorize a war. This is a war; they’re getting the draft ready," Jones said, urging lawmakers to transcend partisan lines to regain control of national security policy.

The political controversy coincides with renewed opposition from Democratic lawmakers. Rep. John B. Larson (D-Conn.) announced legal action and impeachment efforts against Trump and Defense Secretary Pete Hegseth, alleging violations of the War Powers Act. Larson criticized the fiscal 2027 NDAA for funding the Iran conflict and implementing Pentagon policies he argued could restrict voting access.

Fiscal 2027 Defense Spending Plan

Trump’s proposed fiscal 2027 budget includes a significant increase in defense spending to $1.5 trillion, while cutting several domestic programs. The plan prioritizes military, immigration enforcement, and crime funding at the expense of healthcare, agriculture, and environmental initiatives.

Earlier this year, Democratic lawmakers also renewed calls for Cabinet officials to consider invoking the 25th Amendment following Trump’s controversial public statements.

US-Iran Conflict Escalates

The political rhetoric follows a sharp escalation in military activity. On Wednesday, U.S. forces launched strikes on Iran in response to attempted missile attacks on American troops in the Middle East. The conflict has raised regional security concerns, particularly after a drone strike on a gas vessel in Egypt and increased threats to shipping and energy infrastructure. Analysts note that such geopolitical instability often drives volatility in energy markets and defense stocks.

What the Numbers Show

The proposed $1.5 trillion defense budget represents a substantial reallocation of federal resources away from domestic social programs toward military and enforcement capabilities. This shift underscores the administration’s prioritization of national security spending amidst active conflict, potentially influencing long-term fiscal policy and market sectors tied to defense contracting and energy infrastructure.