Gulf Conflict Weighs on Oil Prices as Supply Remains Unfazed

Oil prices retreated on Thursday, July 30, 2026, following a sharp rally in the previous session. The losses came after Wednesday's surge, which saw Brent crude futures jump 7.91% and WTI gain 6.56% following renewed military tensions involving the United States and Iran.

The gains had erased a 5% drop recorded on Tuesday after a temporary lull in the five-month conflict. Market sentiment was initially boosted after US President Donald Trump warned that Washington would strike Iran 'very hard' in response to an Iranian missile attack on a US military base in Jordan.

However, analysts said the market's attention has shifted from military developments to whether oil exports from the Gulf will be disrupted. According to Lin Ye, Vice President of Commodity Markets (Oil) at Rystad Energy, geopolitical headlines continue to trigger sharp price rallies, but those gains tend to fade when supply remains largely unaffected.