Oil prices gave up gains on July 30 as tensions escalated, with Brent and WTI futures falling after a sharp spike in the previous session.
Brent crude futures fell 79 cents (0.9%) to $87.30 a barrel as of 0015 GMT, according to one set of figures, while another report showed a decline of $1.29 (1.42%) to $89.45 a barrel as of 1:10 AM GMT. Similarly, US West Texas Intermediate crude slipped 76 cents (0.9%) to $83.70 a barrel in one account, or 56 cents (0.66%) to $83.90 in another. The discrepancies stem from different reporting times and methodologies.
The previous session, Brent settled up 7.91% and WTI up 6.56%, reversing a 5% plunge on Tuesday. That spike was one of the sharpest of the Iran war, which began in February and has been expanding beyond its main fronts.
39 ships
Commodity ships passing through the Bab el-Mandeb strait on Tuesday, the highest since July 19.
Despite the conflict, commodity tankers continued to pass through the Bab el-Mandeb strait, with 39 ships on Tuesday — the highest since July 19. Only a few ships transited the Strait of Hormuz, the world's most important oil shipping route, which has been largely blocked since the start of the US-Iran war. About a fifth of global oil and gas previously flowed through the strait.
Oil continues to leak out of the region through multiple channels
— Tony Sycamore, IG market analyst
Iran rejected an Omani proposal for joint management of the Strait of Hormuz, a senior Iranian official said on Wednesday. Meanwhile, US-Saudi airstrikes hit Iran-backed paramilitary forces in Iraq on Wednesday — the first time Saudi Arabia publicly joined US air strikes. The strikes were retaliation for drone attacks on Saudi oil targets launched from Iraq, and marked the resumption of US strikes after President Donald Trump called off a bombing campaign amid dwindling munitions.
Iran said it fired on US bases in Jordan and struck three tankers transiting the Strait of Hormuz through an unauthorized route. Separately, Saudi Arabia was seeking to build a coalition to protect Red Sea shipping from Houthi attacks, sources said. The Iran-backed Houthi group in Yemen said on July 20 it would impose a naval blockade on Saudi Arabia in the Red Sea, expanding attacks on tankers and opening a new front.
Updates
Shipping data reveals that 25 commodity vessels, including eight crude oil tankers of varying classes, transited the Bab el-Mandeb strait on Thursday, while only two tankers in ballast status entered the Strait of Hormuz. Despite ongoing tanker activity in both regions, analysts warn that escalating security risks are driving up freight and insurance costs. Furthermore, Saudi Arabia has announced that 14 nations, including Türkiye and Egypt, are supporting a new multinational maritime security coalition aimed at enhancing defense across the Bab el-Mandeb, the Red Sea, and the Gulf of Aden.
While only two ballast tankers entered the Strait of Hormuz on Thursday, the actual number of vessels may be higher as some turn off signals for security. Additionally, 25 commodity ships, including two VLCCs, one Suezmax, and five Aframax tankers, passed through the Bab el-Mandeb strait with 18 entering and 7 exiting. Meanwhile, Saudi Arabia's maritime security initiative in the Red Sea and Gulf of Aden has gained support from 14 countries, including Türkiye, Egypt, and Pakistan.
While tanker traffic in the Strait of Hormuz has seen shipments increase from single digits last week to fourteen commodity vessels on Wednesday, only two tankers in ballast status entered the strait on Thursday. Meanwhile, 25 commodity ships, including two very large crude oil tankers, passed through the Bab el-Mandeb strait on the same day. Additionally, despite volatility, both Brent and WTI crude oil prices are expected to finish July with an approximate 20% increase.
While shipping traffic persists, 25 commodity ships—including two VLCCs, one Suezmax, and five Aframax tankers—passed through the Bab el-Mandeb strait on Thursday. Meanwhile, US Central Command reported that American forces launched airstrikes against dozens of military targets in Iran to degrade its threatening capabilities, prompting retaliatory drone and missile strikes from Iran into Kuwait and Jordan. Additionally, despite the current fluctuations, Brent and WTI crude oil prices are projected to finish July with an approximate 20% increase.
