Global oil prices climb for fourth consecutive day

Global crude oil prices extended their gains for a fourth straight day on Thursday, July 16, as renewed military friction between the United States and Iran, coupled with potential disruptions to shipping in the Strait of Hormuz, stoked fears of a wider conflict in the Middle East.


Brent crude futures rose 33 cents, or 0.4%, reaching $85.28 per barrel.
U.S. West Texas Intermediate (WTI) futures climbed 42 cents, or 0.5%, hitting $80.02 per barrel.

These increases build upon a 0.3% rise from the previous day, bringing prices near the one-month highs established earlier this week.


Military Escalation: Following U.S. strikes on Iranian missile bases and coastal defense systems, Washington has re-imposed naval blockades on key Iranian ports. Iran has responded with threats to further limit regional energy exports, describing the situation as an "existential war."

Strait of Hormuz Risks: The potential for disruption in the Strait of Hormuz remains the primary concern for investors. Prior to the height of current hostilities, the strait was a vital conduit for approximately 20% of the world's total oil and liquefied natural gas (LNG) trade.

Broader Regional Instability: There are growing concerns that Iran may exert further pressure on the Bab el-Mandeb Strait through its allies in Yemen, which would threaten another critical global energy chokepoint.


Looking ahead, Goldman Sachs has warned that if oil exports from the Gulf region face prolonged disruptions, Brent crude prices could exceed $110 per barrel by the end of the year.

However, if tensions subside and production levels stabilize quickly, prices could retreat to the $60 range.