Overview
- U.S. authorities suspended attacks over the weekend, triggering sharp intraday falls with Brent down more than 7% briefly near $90 a barrel and WTI falling about 4–5% into the mid‑$80s.
- The drop did not erase recent gains because benchmarks still posted a third straight weekly rise and large month‑to‑date and year‑to‑date increases in July.
- Oil company shares climbed strongly in July as crude rallied, with some energy stocks up roughly 15–27% this month as higher sale prices boosted profits while extraction costs stayed mostly fixed.
- Threats to key shipping chokepoints remain central to price risk since disruptions through the Strait of Hormuz and attacks linked to the Houthi movement have forced route changes and constrained exports.
- Consumers and policymakers feel the effects now because retail fuel is elevated in places such as Spain and central banks are watching oil for its potential to add to inflation ahead of policy meetings.