Oil Prices Rise Over 1% to Log Strongest Month Since March
On July 31, oil prices closed more than $1 per barrel higher as concerns over global crude flows intensified due to disruptions in the Strait of Hormuz. Brent futures settled at $90.12 a barrel and U.S. West Texas Intermediate (WTI) ended at $84.67 a barrel, marking 24% and 21% gains for July respectively—the strongest monthly performance since March. The ongoing war in Iran has significantly reduced traffic through the Strait of Hormuz, a critical chokepoint that previously handled about one-fifth of global crude oil supplies. Iranian forces have largely blocked shipping there, while Houthi allies in Yemen have threatened vessels transiting the Bab el-Mandeb strait, complicating alternative export routes for regional producers. Geopolitical tensions remain high with reports indicating continued disruptions and discussions between Iran and Oman on managing the Strait of Hormuz. Additionally, U.S. crude stockpiles are at multi-year lows, reinforcing upward pressure on prices.
Topics: geopolitical_risk oil shipping_disruption