Oil heads for monthly surge of 21% as US-Iran war strains supply
Energy markets roar higher in July, with double-digit percentage gains for oil and products such as diesel
Published Fri, Jul 31, 2026 · 06:51 AM
[TOKYO] Oil steadied at the end of a volatile week, with prices on track for the biggest monthly gain since March as the US-Iran war escalated.
West Texas Intermediate held near US$84 a barrel after swinging in a range of more than US$8 this week.
For the month, the US crude marker has soared by about a fifth. Brent settled around US$89 a barrel in the previous session.
While the US and Iran again exchanged strikes on Thursday (Jul 30), shipping through the Strait of Hormuz appears to have picked up in recent days.
Meanwhile, Saudi Arabia discussed with military representatives of 43 countries the formation of an alliance charged with protecting navigation, hoping to counter a blockade the Iran-backed Houthi militants imposed on the kingdom last week.
Energy markets have roared higher in July, with double-digit percentage gains for oil as well as products such as diesel. This month, a fragile pause in hostilities between Washington and Teheran collapsed, the Yemen-based Houthis entered to fray, and Saudi Arabian forces joined the US to strike Iran-backed groups in Iraq. US stockpiles have continued to draw.
The International Monetary Fund still sees a risk that the Middle East oil shock could tip the global economy into recession, although the impact would be modest if Hormuz reopens soon, according to managing director Kristalina Georgieva. BLOOMBERG
