Oil Prices Soar as Strait of Hormuz and Bab el-Mandeb Blockade Continues

The global oil market is experiencing significant disruptions due to the dual blockade of the Strait of Hormuz and Bab el-Mandeb. This has led to a sharp increase in oil prices, with both ICE Brent and WTI gaining $10 per barrel on the week.

While it's technically possible to bypass the Bab el-Mandeb through the Suez Canal, this would result in longer routes and higher costs for oil transporters.

OPEC+ is expected to raise September output targets by another 188,000 b/d at its August 2 meeting, signaling the group's push to fully unwind its 2023 voluntary cuts despite ongoing conflicts and security threats.