International oil prices surged on July 17 (local time) as the conflict between the United States and Iran entered its seventh day, with signs of escalation including strikes on civilian infrastructure in Gulf nations.

On the ICE Futures Europe exchange, the settlement price for Brent crude for September delivery rose 4.5% from the previous session to $88.10 per barrel.

At the New York Mercantile Exchange, the settlement price for West Texas Intermediate (WTI) crude for August delivery also climbed 4.5% to $82.49 per barrel.

Kuwait’s Ministry of Electricity, Water and Renewable Energy announced on the same day that Iranian strikes on power plants and seawater desalination facilities within Kuwait had caused equipment damage, fires, and destruction of power generation infrastructure.

This move by Iran followed the U.S. military's decision the previous day to expand its airstrike targets in Iran to include civilian facilities such as railway junctions and bridges.

U.S. President Donald Trump had warned on July 14 that if Iran does not agree to negotiations, the U.S. would target Iranian civilian infrastructure, including bridges and power plants, starting next week.

It is also reported that the deployment of ground troops to facilities such as Kharg Island, a major Iranian oil export terminal, is not being ruled out.

Reuters reported the previous day that Iran has instructed Houthi rebels in Yemen to prepare to blockade oil shipping routes in the Red Sea in the event that Iran's own power infrastructure is attacked by the United States.

Threats to the Red Sea and the Bab el-Mandeb Strait could further exacerbate the global energy crisis already triggered by Iran's blockade of the Strait of Hormuz.

Tamas Varga, an analyst at PVM Oil Associates, stated in an investor note, "With a significant portion of Saudi Arabian exports diverted to the Yanbu port (on the Red Sea) via the East-West Pipeline to avoid the Strait of Hormuz, these developments represent a tangible threat."