War Drives Oil Prices Up 24%
Oil prices ended July with their largest monthly gain since March. Brent crude futures rose 1.2% to close near US$88 per barrel, while West Texas Intermediate (WTI) climbed 1.3% to US$84.67 per barrel.
Throughout July, Brent prices surged nearly 24%. This rise was driven by heightened risks of energy supply disruptions stemming from the conflict in the Middle East and a series of attacks on oil tankers near the Black Sea.
Tensions escalated after US President Donald Trump expressed a loss of confidence in Iranian negotiators. That statement heightened concerns that the conflict could be prolonged, potentially disrupting oil shipments through the Persian Gulf region.
Supply risks also arose from attacks on vessels operating near the Caspian Pipeline Consortium terminal. As a vital route for Kazakh oil exports supplying numerous European refineries, any disruption at the terminal could tighten global supplies.
Although shipping through the Strait of Hormuz has begun to recover, the threat level remains high following the collapse of the US-Iran truce and increased attacks by Houthi rebels in the Red Sea. Declining US oil inventories provided further support for prices.
Newsmaker Analysis: Oil prices could remain elevated as long as the conflict persists and shipping routes remain under threat. However, the sharp gains seen in July also raise the risk of profit-taking. Continued strength in oil prices could fuel inflation, reinforce expectations of high interest rates, and dampen global economic growth. (arl)
Source: Newsmaker.id
