Oil Prices Soar 20% as US-Iran Tensions Reach Boiling Point

Oil prices surged by nearly 20% in July due to escalating tensions between the US and Iran, particularly in the Strait of Hormuz. The global benchmark Brent traded at around $88 a barrel after swinging in a range of about $11 last week.

The US-Iran war saw multiple strikes exchanged on Thursday, but shipping through the Strait appears to have picked up in recent days. Saudi Arabia is forming an alliance with 43 countries to protect navigation in and around the Red Sea.

Economists are cautious about the potential impact of the conflict on global energy markets. The International Monetary Fund warns that a prolonged closure of the Strait could tip the global economy into recession, although the effect would be modest if it reopens soon.