Oil prices surge after US strikes on Iraq
Photo: Oil prices rose sharply following US strikes on Iraq (Getty Images)
Oil prices rose by about $3 per barrel on Wednesday, July 29, following joint US-Saudi strikes on Iraq, according to Reuters.
Brent crude futures rose by $3.15, or 3.8%, to $87.24 per barrel, while US West Texas Intermediate (WTI) crude rose by $2.73, or 3.4%, to $81.99 per barrel.
Oil prices began to rise again after the US announced that it had intercepted a missile strike targeting American troops.
Following this, the US and Saudi Arabia launched strikes against Iranian-backed groups in Iraq, accusing them of drone attacks on Saudi oil facilities. In response, Iran called these accusations a serious mistake.
The agency notes that recent events are dampening expectations of a rapid de-escalation of tensions in the Persian Gulf. On July 28, only five commercial vessels passed through the Strait of Hormuz, where tanker traffic remains low.
Analysts at DBS Bank suggest that Brent crude oil prices will continue to fluctuate between $80 and $100 per barrel in the near term, as the conflict in the Middle East alternates between lulls and flare-ups.
According to experts, a complete lifting of the blockade of the Strait of Hormuz will not be achieved, and oil prices could reach a higher level, around $80 per barrel, even if the situation de-escalates.
According to preliminary estimates, US crude oil inventories fell by approximately 3.3 million barrels during the week ending July 24. Meanwhile, OPEC+ is expected to suspend its planned increase in oil production for three months, starting in October, which will further support prices.
US and Saudi Arabian strikes on Iraq
On July 28, the United States, in conjunction with the Saudi Arabian Armed Forces, carried out a series of precision strikes against pro-Iranian militants in Iraq. The operation was a response to attacks that, according to the US side, were coordinated by the Islamic Revolutionary Guard Corps (IRGC).
The US stated that the joint operation was a decisive response to more than 30 drone attacks carried out by Iranian-backed militants over the past 72 hours.
At the same time, US military officials emphasized that none of the attacks on US forces achieved their objective.
