Oil Futures Rally With Two-Digit Weekly Gains Amid Middle East Tensions

According to Jin10, oil futures recorded two-digit gains this week as of July 18, driven by escalating Middle East tensions. The U.S. expanded military strikes on Iranian targets, while Iran launched attacks on neighboring Gulf states. Additionally, Houthi forces in Yemen pose a potential threat to Red Sea shipping routes, a critical corridor for Saudi Arabian oil exports amid Strait of Hormuz closure concerns.

Barclays analyst Amarpreet Singh noted that with global crude inventories at multi-year lows and most strategic petroleum reserves releases completed, renewed tensions around the Strait of Hormuz present significant upside risks to energy prices.