Hormuz Concerns Send Oil Prices Soaring

Oil prices rose by over $1 per barrel on Friday, closing out July with their biggest monthly gains since March. Brent futures settled up $1.09 to $90.12 a barrel, while US West Texas Intermediate (WTI) futures closed up $1.08 to $84.67 a barrel.

The increase in oil prices was driven by concerns over global crude flows, particularly through the Strait of Hormuz. Iran has largely blocked shipping through the strait since the conflict began, disrupting millions of barrels per day of Middle East output.

Talks between Iran and Oman on managing the strait continue, despite Tehran's rejection of Oman's proposal for joint management. The geopolitical risk premium remains firmly in place near chokepoints like the Strait of Hormuz, according to Research firm Gelber & Associates.