Mayday! Mayday! Global Oil Prices Surge Again

Global oil prices strengthened during the final trading sessions of July 2026. Concerns regarding oil delivery disruptions have resurfaced as conflicts in the Middle East expand across several countries, and vessel traffic in the Strait of Hormuz remains severely restricted.

According to Refinitiv, Brent crude closed up 1.22% at US$90.12 per barrel on Friday (31/07/2026), while West Texas Intermediate (WTI) rose 1.29% to US$84.67 per barrel. This increase concluded a sharp upward trend throughout July; Brent surged by 23.59% and WTI jumped by 21.83% over the month, marking their largest monthly gains since March 2026.

Carsten Fritsch, Head Analyst for Commodities at Commerzbank, stated that the Middle East conflict continues to trigger high volatility in commodity markets, including oil. Tensions escalated after the Iranian Revolutionary Guard reportedly intercepted two tankers attempting to traverse the Strait of Hormuz, forcing four other vessels to divert their routes. While two very large crude carriers (VLCCs) managed to exit the Strait on Friday, Kpler vessel tracking data indicates that traffic in the passage remains sparse.