Amid ongoing military clashes between the United States and Iran, Brent crude oil prices rose by more than two per cent on Monday, July 20, surpassing the $90-per-barrel mark.
Reuters reported that reduced ship traffic through the Strait of Hormuz and potential disruptions to the oil supply were the primary drivers behind the price increase. According to the report, only “four vessels” navigated the Strait of Hormuz on Sunday, down from eight the previous day.
Reuters also noted that, as oil prices rose, Asian stock market indexes declined. Analysts attributed this trend to growing investor anxiety over the escalating conflict, disruptions to energy exports, and the resulting inflationary pressures.
Some analysts warned that if traffic disruptions in the Strait of Hormuz persist, oil prices could reach approximately $150 per barrel, though this scenario is not currently the market’s primary baseline projection.
Gold prices remained largely unchanged on Monday. Reuters reported that while rising oil prices and heightened geopolitical risks supported gold, expectations regarding US monetary policy and a stronger US dollar prevented further gains for the precious metal. Analysts indicated that investors continued to assess the ongoing conflict’s impact on global markets.
