Crude Oil Prices Soar Amid Middle East Uncertainty and Ukraine-Russia Conflict

Crude oil prices surged on Thursday due to concerns over oil supplies from the Middle East. The uncertainty stems from a proposed plan by Iran and Oman to partially reopen the Strait of Hormuz, as well as reports of a missile attack on a Saudi oil tanker by Houthi rebels.

The Strait of Hormuz is a critical waterway for oil exports, and any disruptions to its operations can impact global oil supplies. The proposed agreement between Iran and Oman could lead to the partial reopening of the strait, but it's unclear when this will happen or how long it will last.

In addition to the Strait of Hormuz issue, Ukraine's drone attacks on Russian oil infrastructure have also contributed to the increase in crude prices. According to EA Analytics, Russian crude-processing rates will average 3.51 million bpd in July, the lowest in 24 years, due to damage from these attacks.