Iran Conflict Drives Oil Prices Up 21%
Global oil prices softened during Friday's trading (July 31) but remained on track for their largest monthly gain since March. Brent crude held steady around US$85 per barrel, while West Texas Intermediate traded above US$82 per barrel during the Asian session.
Throughout July, Brent prices surged by approximately 21%. This rise was driven by the conflict involving the United States and Iran, which heightened the risk of oil supply disruptions from the Middle East.
Although shipping through the Strait of Hormuz has begun to increase, the market remains concerned about the security of this vital global energy artery. Saudi Arabia is also discussing the formation of a 43-nation alliance to protect shipping in the Red Sea region against threats from Houthi groups.
Supply risks also stem from the Black Sea region, following the renewed suspension of Kazakh oil shipments due to attacks on tankers. This situation has fueled concerns that oil distribution disruptions are not limited to the Middle East.
Oil prices are likely to remain elevated as long as the conflict persists. However, such increases could also intensify inflationary pressures and raise the risk of a global economic slowdown, particularly if the Strait of Hormuz faces further disruptions or the conflict escalates. (asd)
Source: Newsmaker.id
