Middle East Tensions Fuel Crude Oil Price Surge

Crude oil prices are rising due to concerns about oil supplies from the Middle East. The Houthi rebels in Yemen have said they targeted a Saudi oil tanker with a ballistic missile, which has increased uncertainty over the region's ability to supply crude.

A proposed plan by Iran and Oman to partially reopen the Strait of Hormuz is also being closely watched. If successful, it could help ease concerns about oil supplies from the Middle East. However, Iranian officials have said that a normalization of the strait will depend on the US lifting its blockade on Iranian ports.

Other factors contributing to the rise in crude prices include Ukraine's intensifying drone attacks on Russian oil infrastructure. According to EA Analytics, Russia's crude-processing rates are expected to average 3.51 million bpd in July, the lowest in 24 years, due to damage caused by these attacks.