Oil Prices Soar Amid US-Iran Tensions and Middle East Disruptions
Oil prices are experiencing their biggest monthly gain since March, primarily due to rising tensions between the US and Iran, as well as disruptions in the Middle East. WTI crude is holding steady near $84 per barrel, while Brent is around $89 per barrel. Both have surged this month, with WTI up 21%.
The price increase is also affecting diesel prices, which are rising due to conflicts and Houthi attacks that are making supply routes tricky. Despite ongoing threats, shipping through the Strait of Hormuz appears to have picked up in recent days.
Saudi Arabia is pushing for an alliance to counter a Houthi blockade in the Red Sea, while attacks on tankers and oil facilities continue. The Black Sea saw record disruptions in July, adding to the volatility in the market. Jay Hatfield, CEO of Infrastructure Capital Management, predicts that oil prices will remain volatile, ranging from $80 to $100.