Global oil prices are ending July with their strongest monthly gain since March amid an escalation of the conflict between the US and Iran and concerns over supply disruptions. This is reported by Bloomberg, writes UNN.
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American oil West Texas Intermediate (WTI) traded near $84 per barrel after fluctuations in a range of more than $8 during the week. Since the beginning of the month, its value has increased by approximately 21%. Meanwhile, Brent crude closed the previous session at around $89 per barrel.
Bloomberg notes that despite new mutual strikes between the US and Iran, shipping through the Strait of Hormuz has intensified in recent days. At the same time, Saudi Arabia discussed with representatives of 43 states the creation of a coalition to protect shipping in the Red Sea after attacks by Iran-backed Houthis.
Markets assess risks to global oil supply
Houthi leader Abdulmalik al-Houthi said that Riyadh is allegedly preparing for a "comprehensive escalation," threatening larger-scale attacks. In addition to attacks on tankers, the group also stated its intention to attack oil infrastructure.
Additional pressure on the market is created by declining oil inventories in the US and disruptions to exports from the Black Sea. According to Bloomberg, this month nine tankers were attacked near or en route to the Caspian Pipeline Consortium terminal, the highest number since the start of Russia's full-scale war against Ukraine.
Shipping through the Strait of Hormuz remains at a historically low level30.07.26, 06:35
The International Monetary Fund warns that a prolonged oil shock in the Middle East could negatively impact the global economy, although the risks will be smaller if the situation in the Strait of Hormuz stabilizes.
Infrastructure Capital Management CEO Jay Hatfield predicts that as long as the conflict continues, WTI prices will remain in the range of $80-100 per barrel. According to his estimate, after the end of the war, quotes could fall to $50-60 per barrel.
Oil prices rose nearly 7% amid the resumption of airstrikes in the Middle East29.07.26, 17:05