Oil prices remain high due to escalating conflict between the US and Iran in the Strait of Hormuz. The tension could lead to further increases in oil prices to $85-87 per barrel.
On Thursday, July 16, profit-taking led to a slight decrease in oil prices, but they remained close to the month’s maximum levels. The conflict between the US and Iran, intensified by recent strikes, has increased risks for the global oil market. Brent futures fell by 24 cents to $84.95 per barrel, and WTI by 15 cents to $79.45 per barrel.
The conflict began after Iran resumed a naval blockade, prompting the US to strike Iranian coastal facilities. Tehran, in response, threatened to block energy export routes in the region. On Wednesday, only seven vessels passed through the Strait of Hormuz, significantly fewer compared to thirteen the previous day.
Analysts note that traders are closely monitoring the situation and assessing the possibility of a real supply reduction, which could drive up oil prices. Escalation of conflict could also affect other key routes, such as the Bab al-Mandab Strait, where Iran-backed Houthis from Yemen are becoming more active.
US President Donald Trump is considering expanding military operations in Iran, which was discussed in a meeting with advisors in the Situation Room.
| Date | Brent Price ($/barrel) | WTI Price ($/barrel) |
|---|---|---|
| July 15 | 85.19 | 79.60 |
| July 16 | 84.95 | 79.45 |
