Why the Latest Oil Rally May Be Far From Over
Global oil prices are rising due to geopolitical tensions in the Strait of Hormuz and the Bab el-Mandeb, with analysts predicting prices could exceed $100 per barrel. Meanwhile, OPEC plans to increase output targets despite ongoing security threats and Houthi attacks on Saudi tankers.
Why it matters
Rising oil prices significantly impact global inflation, transportation costs, and energy security for major economies.
The dual disruption of Hormuz and Bab el-Mandeb is tightening global oil flows, raising transport costs and fueling expectations of $100 oil. Friday, July 24, 2026 The double blockade of the Strait of Hormuz and the Bab el-Mandeb has turbo-boosted oil prices this week, with both ICE Brent and WTI gaining $10 per barrel on the week. Whilst technically the Bab el-Mandeb could be bypassed through the Suez Canal, resulting in longer routes and higher costs, the dramatic decline in transits via the Hormuz should be of particular worry to the oil markets. President Trump's usual Friday posts notwithstanding, oil-deprived refiners across the globe will soon push oil back above $100 per barrel. OPEC Seeks to Fully Unwind Voluntary Cuts.
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