London, July 31, 2026: Oil prices were broadly steady on Friday and remained on course for their strongest monthly gains in more than a year as traders weighed geopolitical risks in the Middle East against signs of improving shipping activity through key global energy routes.
Brent crude futures rose 47 cents, or 0.53 percent, to $89.50 per barrel by 0952 GMT, while US West Texas Intermediate (WTI) crude gained 4 cents, or 0.05 percent, to $83.63 per barrel.
For the month of July, Brent was on track to surge 22 percent and WTI around 20 percent, ending two consecutive months of declines for both global benchmarks.
Market analysts said concerns over the security of global oil supplies continued to underpin prices, although indications of increased tanker movements through the Strait of Hormuz helped ease fears of severe supply disruptions.
ING analyst Daniel Hynes said oil prices were being supported by rising geopolitical tensions but were also facing pressure from reports of improved shipping activity through the strategic waterway.
The Strait of Hormuz, through which around one-fifth of the world’s crude oil and liquefied natural gas supplies normally pass, has remained at the centre of market attention after being largely blockaded since the outbreak of the US-Israel conflict with Iran in late February.
Meanwhile, Saudi Arabia is leading efforts to establish a multinational maritime defence coalition aimed at enhancing security in the Bab el-Mandeb Strait, the Red Sea and the Gulf of Aden—critical routes for global energy shipments.
According to the Saudi Ministry of Defence, 14 countries, including Pakistan, Egypt, Türkiye, Sudan and Djibouti, have expressed support for the proposed coalition.
The development comes after Yemen’s Houthi movement announced a naval blockade targeting Saudi Arabia last week, raising concerns over the security of Red Sea shipping routes, an important alternative to the Strait of Hormuz for Saudi oil exports.
Analysts noted that although tanker traffic has continued through both the Strait of Hormuz and the Red Sea, heightened security risks have significantly increased freight charges and war-risk insurance premiums.
Phillip Nova analyst Priyanka Sachdeva said the higher shipping and insurance costs had embedded a substantial geopolitical risk premium into global oil prices.
“While prices eased from recent highs, the broader trend remains constructive,” she said.
