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Oil Surges 20% as Middle East Tensions Explode
31 Jul
Summary
- Brent crude prices surged nearly 20% in July due to escalating US-Iran conflict.
- Houthi militants and Iran targeted key shipping routes like the Strait of Hormuz.
- Supply disruptions in the Black Sea also impacted global energy availability.
Brent crude is on track for its most significant monthly gain since March, with prices rising roughly 20% in July. This surge is attributed to escalating tensions between the U.S. and Iran and widespread disruptions affecting key global shipping routes.
The conflict intensified as Iran's Revolutionary Guard launched ballistic missiles toward U.S. forces in Jordan, a fragile pause in hostilities having collapsed. Concurrently, Houthi militants in Yemen became active participants, targeting vital corridors such as the Strait of Hormuz and the southern Red Sea. These actions aim to disrupt the flow of Middle Eastern oil to international markets.
Beyond the Middle East, supply disruptions in the Black Sea have also concerned traders. Operations at a crucial export terminal for Kazakhstan's crude shipments were suspended again this week following repeated attacks on tankers. The International Energy Agency has forecast a substantial fall in global energy supply by 2026, with inventories at risk of historic lows.
