Oil Prices Plummet Amid Red Sea Disruptions, Trump Threatens Iran
Oil prices fell by over 3% on July 24 due to disruptions in the Red Sea and heightened tensions between the US, Israel, and Iran. Brent futures dropped to $97.10 a barrel, while WTI futures were down at $89.05 a barrel. Despite this decline, oil is on track for a weekly gain of over 10% for Brent and nearly 8% for WTI.
US President Donald Trump has threatened to take action against Iran, stating that he is close to making a decision about a 'massive attack' on the country. He also said that if there are further attacks on Saudi oil tankers by Yemen's Houthi rebels, the US will hold Iran responsible and inflict major military punishment.
Disruptions in the Strait of Hormuz have been reaching peak levels seen in March, with outages in the Red Sea driving up prices due to supply constraints. Analysts at JPMorgan predict that each additional month of disruption would add $7-$8 a barrel to Brent prices, potentially lifting monthly average prices to around $114 a barrel if disruptions extend to three months.