International Oil Prices Rise 2% Amid Escalating U.S.-Iran Conflict and Red Sea Blockade Threats

On July 21 (local time), international oil prices continued to rise as military clashes between the United States and Iran intensified, compounded by threats from the Iran-backed Houthi rebels in Yemen to blockade the Red Sea.

On the ICE Futures Exchange, the closing price for Brent crude oil for September delivery rose 2.01% from the previous session to $91.01 per barrel.

At the New York Mercantile Exchange, the closing price for West Texas Intermediate (WTI) crude oil for August delivery also increased by 2.02% to $84.91 per barrel.

These closing prices mark the highest levels for Brent crude since June 10 and for WTI since June 11.

The simultaneous rise in geopolitical risks across the Middle East has driven up oil prices.

Tensions escalated following U.S. airstrikes on Iran, which led to retaliatory attacks by Iran on U.S. military facilities in Bahrain, Kuwait, and Jordan, as well as a series of tanker attacks near the Strait of Hormuz.

Furthermore, the Houthi rebels declared a maritime blockade against Saudi Arabia in the Red Sea, leading to tangible logistical disruptions, including the rerouting of two tankers carrying Saudi crude oil that had been heading toward Asia.

Supply-side concerns also emerged outside of the Middle East.

On July 19, the Caspian Pipeline Consortium terminal in southern Russia was struck by a Ukrainian drone, resulting in the suspension of shipments of Kazakh crude oil.

Energy consulting firm Gelber & Associates analyzed the situation, stating, "This rise is a result of the market reflecting instability in Red Sea transit and uncertainty regarding Saudi exports to Asia, rather than an immediate reduction in crude oil supply."
※ Please note: This article was translated by AI and may contain errors.