Crude Oil Prices Head for 20% Monthly Surge as US-Iran Conflict Escalates | July 31, 2026

Oil prices edged higher during Asian trading on Friday, July 31, 2026, and were set to record their strongest monthly gain since March 2026, as escalating tensions between the United States and Iran raised fears of prolonged supply disruptions across the Middle East, as per news reports. Lower U.S. crude inventories also added to bullish market sentiment. 

Brent crude futures for September delivery rose 0.7% to US$89.64 per barrel, while West Texas Intermediate (WTI) crude futures gained 0.6% to US$84.06 per barrel.  

Although both benchmarks remained on course for a weekly decline of nearly 7%, they were still poised to advance almost 21% during July. 

Middle East Conflict Raises Supply Concerns 

Oil markets remained under pressure after fresh U.S. strikes on Iranian military targets triggered retaliatory Iranian missile attacks on U.S. positions and regional allies. The widening conflict has intensified concerns over potential disruptions to global crude supplies. 

Investor sentiment weakened further after an unidentified drone struck gas vessels at Egypt's Damietta port near the Suez Canal, causing fires and raising concerns about the security of another vital energy transport route.  

The incident heightened worries over shipping through both the Suez Canal and the nearby SUMED pipeline, which are critical routes for crude oil and refined fuels moving from the Middle East to Europe. 

Shipping Risks Continue to Grow 

Concerns over maritime security have also increased as Houthi militants intensified threats against commercial shipping in the Red Sea, while Iran maintained tighter control over vessel movements through the Strait of Hormuz. These developments have forced several shipowners to reconsider shipping routes. 

In response, Saudi Arabia held discussions with representatives from 43 countries on establishing a maritime coalition aimed at protecting shipping routes around the Red Sea. 

Read More: Swiggy Q1 FY27 Results: Net Loss Narrows 34% YoY to ₹791 Crore, Quick-Commerce Revenue Jumps 53%! 

Falling U.S. Inventories Support Oil Prices 

Oil prices also received support from a sharp decline in U.S. crude inventories. According to the U.S. Energy Information Administration (EIA), commercial crude stockpiles fell by 7.2 million barrels to 404.5 million barrels in the week ended July 24, 2026.  

The larger-than-expected drawdown left U.S. crude inventories at their lowest level since 2018, reinforcing expectations of tighter global supply. 

Conclusion 

Crude oil prices continue to be driven by geopolitical tensions and tightening supply conditions. With the U.S.-Iran conflict showing little sign of easing and inventories declining sharply, energy markets are likely to remain volatile in the near term. 

Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.