Crude Prices Head for Biggest Monthly Gain in Nearly Two Years

Oil prices are on track to surge by nearly 20% in July, despite signs of improving tanker traffic through the Strait of Hormuz. Brent crude currently trades at $88 per barrel, down 1.16 percent from its previous close.

The monthly gain would be one of the strongest in nearly two years, following weeks of conflict in the Middle East. The sharp geopolitical risk premium triggered by the US-Iran tensions sent Brent briefly above $100 per barrel earlier this month.

Analysts at ING pointed to growing indications that ship-to-ship movements of crude through Hormuz have resumed, although much of the activity remains difficult to track due to vessels operating with their transponders switched off.

US Energy Secretary Chris Wright stated that approximately 13 million barrels per day of crude oil are now leaving the Persian Gulf, indicating a gradual recovery in export flows despite ongoing hostilities.