Brent crude prices closed July with a decisive upward move, reversing a two-month downtrend to post gains exceeding 20% for the month.
The rally was fueled by intensifying geopolitical friction in the Middle East, which has significantly dampened expectations for a near-term diplomatic resolution to the ongoing conflict.
After stabilizing around $72 earlier in the month amid uncertainty, the benchmark has climbed steadily as diplomatic channels appear to have reached an impasse.
Reports indicating a stalled path toward reopening the Strait of Hormuz have kept risk premiums elevated, with traders pricing in persistent supply disruption risks as the month ended.
The sharp repricing underscores the market's sensitivity to shipping security in key chokepoints.
After stabilizing around $72 earlier in the month amid uncertainty, the benchmark has climbed steadily as diplomatic channels appear to have reached an impasse.
The move reflects a broader shift in sentiment, where the threat of physical disruption to tanker routes outweighs demand-side concerns that had previously weighed on prices.