Narrative thread · 18 events · Forecast hits 5/8

Oil Market

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The outbreak of the Iran war on 28 February 2026 and the effective closure of the Strait of Hormuz triggered, according to the International Energy Agency, the largest supply disruption in the history of the global oil market, with Brent prices jumping to around 80 to 82 US dollars per barrel by early March. With the ceasefire in April and the Islamabad Memorandum agreed in June, which provided for the reopening of the strait, Gulf exports recovered markedly and prices fell to around 68 to 70 US dollars by early July, close to pre-war levels. OPEC+ signaled that it would stick to the scheduled production increases from August, which is seen as a sign of the cartel's weakened ability to steer the market against growing non-OPEC volumes. The renewed escalation between the United States and Iran on 7 and 8 July pushed prices up again, so that in mid-July 2026 price developments still depend heavily on the political situation around Hormuz.

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Timeline in detail

Thursday, 16 July 2026Economy

Oil and gas prices rise on the Middle East escalation

Oil prices rose for the fourth day in a row as US strikes on Iran stoke fears of a wider conflict. Asian gas prices reached their highest level since late March. The reason is the fear that shipping through the Strait of Hormuz will remain disrupted for longer.

Oil prices rose for the fourth trading day in a row, as the renewed US strikes on Iran heighten fears of an expansion of the conflict; this is reported by Reuters. Bloomberg reports that Asian prices for liquefied natural gas reached their highest level since late March, because market participants fear a longer-lasting disruption of shipping through the strategically important Strait of Hormuz. Both independent and market-liberal sources clearly link the price movement to the military escalation in the Gulf. A full price shock with Brent well above 100 dollars is not yet described in the reports, but rather a heightened, nervous market situation. For importing countries this sharpens inflation worries, while oil and gas exporters benefit in the short term. How much further prices rise depends largely on whether the strait is actually blockaded.

ReutersBloomberg

Thursday, 16 July 2026GeopoliticsUS-Iran war escalates further: second wave of strikes, naval blockade, and threat of "existential war"

US-Iran war escalates further: second wave of strikes, naval blockade, and threat of "existential war"

Within a single day, the US military flew a second wave of strikes against Iranian coastal defenses and missile positions and reimposed the naval blockade of Iran's ports. Tehran spoke of an "existential war" with America, threatened to halt further energy exports, and reported drone attacks on US bases in Jordan. For the first time, targets in northern Iran were also hit.

According to US Central Command, on Wednesday the US military launched a second wave of strikes on the same day, hitting Iranian coastal defense installations and missile positions after having earlier renewed the naval blockade of Iranian ports. Iran declared it was in an "existential war" with the United States and threatened to cut off further regional energy exports; on Thursday morning the Iranian army reported drone attacks on US military installations in Jordan. The Western-oriented sources (Daily Maverick, FAZ, Haaretz) emphasize the growing US firepower, the pressure on Tehran, the first-time expansion of the strikes into the north of the country, and the disabling of an oil tanker. Al Jazeera, by contrast, highlights the civilian damage and quotes an Iranian doctor as saying a US strike damaged a children's cancer clinic; this account comes from an Iranian source and could not be independently confirmed. Serbia's B92 speaks matter-of-factly of a "second strike" and reports the CENTCOM statement. In parallel, Trump praised Tehran's release of a US citizen, which points to narrow channels amid the escalation. The ceasefire brokered by Washington the previous week is now definitively history.

Daily MaverickLe MondeFAZAl JazeeraB92

Forecast · Assessment

Most likely55%
The exchange of strikes and retaliation continues for days without the US destroying the underground nuclear facilities or Iran fully closing the Strait of Hormuz.
Worst case25%
Trump has Iran's power grid and civilian infrastructure bombed, Iran closes the strait and fires on further US bases, and the war spreads across the region.
Best case20%
Mediation pressure from the Gulf states forces a new ceasefire within days along with talks on shipping.

Wednesday, 15 July 2026EconomyOil price rises, fuel markets in record tightness due to the Hormuz crisis

Oil price rises, fuel markets in record tightness due to the Hormuz crisis

The renewed U.S. strikes on Iranian energy targets are driving up the oil price, and fuel markets in the United States and Europe are showing a "record tightness," according to Bloomberg. Economists consider a rate hike "by September" possible; British heating-oil customers are to be compensated.

That the Hormuz escalation is hitting the energy markets is disputed by no side: Reuters and The Wall Street Journal report rising oil prices after the strikes against energy targets, and Bloomberg speaks of "record tightness" in fuel markets on both sides of the Atlantic. In the framing, the papers set different accents. The conservative Telegraph puts the monetary-policy consequences up front, rate hikes "by September," driven by the oil price. The liberal Economist holds Trump's "Hormuz brinkmanship" directly responsible for the worsening global fuel crisis and stresses that rising oil prices are only part of the problem. The BBC personalizes the consequences and reports compensation for British heating-oil customers after the price jump. The rise in oil and fuel costs and the real danger that it will reignite inflation are facts; what is contested is how much of it is down to the war itself and how much to Washington's escalatory course.

The TelegraphThe EconomistReutersBloombergBBC News

Forecast · Assessment

Most likely55%
Oil and fuels remain elevated and volatile, inflation worries grow, but a full price shock does not yet materialize.
Worst case25%
A de facto closure of Hormuz drives Brent above 100 dollars, stokes inflation and forces tighter monetary policy.
Best case20%
A swift de-escalation lets oil and fuel prices fall back and eases the inflation situation.

Monday, 13 July 2026EconomyOil price at monthly high, stock markets under pressure from Middle East escalation

Oil price at monthly high, stock markets under pressure from Middle East escalation

Brent crude has risen above 85 dollars for the first time in a month, driven by tensions over the Strait of Hormuz. On the stock markets, dashed hopes of an early end to the war and a retreat from AI stocks weighed on prices. At the same time, investors are awaiting US inflation data and bank earnings.

Al Jazeera and Reuters report Brent near 85 dollars at a monthly high because of the US-Iran fighting and the blockade announcement. The AP reports that oil prices jumped while AI-driven Asian stocks gave way. Reuters points to the upcoming US consumer prices: falling gasoline prices are likely to have dampened June inflation, but the newly reignited Iran war could undo the progress. Australian economists warn, according to the Guardian, that sustained attacks could drive oil above 100 dollars and make further interest rate hikes more likely. The sources are broad (Gulf, US, UK) and agree in their diagnosis that Hormuz is the central price driver; what remains disputed is how lasting it will be.

Al JazeeraReutersAssociated PressThe Guardian

Forecast · Assessment

Most likely55%
The oil price remains elevated and volatile, and the stock markets move sideways until US inflation data and bank earnings bring more clarity.
Worst case25%
A complete disruption of Hormuz traffic drives Brent above 100 dollars, fuels inflation and forces tighter monetary policy.
Best case20%
A rapid de-escalation lets the oil price fall back and supports stocks and the easing of inflation.

Monday, 13 July 2026EconomyTrump imposes naval blockade and 20 percent levy on Hormuz transit

Trump imposes naval blockade and 20 percent levy on Hormuz transit

President Trump has reinstated the US naval blockade against Iranian ships and demanded a 20 percent levy on all goods passing through the Strait of Hormuz. The measure is to be enforced from Tuesday. Economists warn of a doubling of freight costs for oil and goods.

Roughly a fifth of the world's traded oil passes through the strait; the NYT calculates that the 20 percent toll could double transport costs. Trump ties the blockade to a demand that the wealthy Gulf states pay for their protection against Iranian attacks (Al Jazeera). The Berliner Zeitung and the AP stress the consequences for consumers: gasoline, gas and heating costs are likely to rise, and oil prices have already climbed by around nine percent. Critics see the levy as a legally questionable charge imposed on international waters; the AP also asks how difficult it actually is to keep the strait open militarily. The sources are broad (US, Germany, Gulf) but weigh Washington's cost-and-power perspective heavily; Iranian counterarguments are largely absent.

New York TimesBerliner ZeitungAssociated PressAl Jazeera

Forecast · Assessment

Most likely55%
The blockade is partially enforced, shipping companies avoid the route or pay, and freight and energy prices remain elevated without the toll fully taking hold.
Worst case20%
Iran responds with a de facto closure of the strait, the price of oil surges past 100 dollars and triggers a global inflationary shock.
Best case25%
International pressure and complaints about its legality force Washington to withdraw or suspend the levy quickly.

Sunday, 12 July 2026EconomyOil price jumps after Hormuz escalation, stocks fall, rate-hike bets rise

Oil price jumps after Hormuz escalation, stocks fall, rate-hike bets rise

Oil prices made their biggest jump since April after Trump demanded a 20 percent levy on cargo passing through the Strait of Hormuz. Stocks and bonds fell, and traders priced in a possible Fed rate hike.

The renewed US-Iran escalation at the Strait of Hormuz hit markets hard on July 12. According to Bloomberg, oil posted its biggest daily jump since April after Trump said he wanted to impose a 20 percent levy on all cargo passing through the strait. Stocks and bonds fell together, as a possible supply disruption revived inflation fears. According to Bloomberg, traders now see roughly a 50 percent chance that the Fed, led by Kevin Warsh, will raise rates as soon as July, with the WSJ calling this Warsh's first major directional decision. Reuters warns that Europe's kerosene stocks would last less than a month if the disruption persists. The conservative Welt criticizes that it is above all the Europeans who are paying the price for Trump's protection-money maneuver. The assessment differs depending on the camp: market-liberal outlets emphasize the inflation risk, European voices the geopolitical dependence.

BloombergBloombergReutersDie Welt

Forecast · Assessment

Most likely55%
Oil stays elevated and volatile amid persistent Hormuz uncertainty, and the Fed explicitly keeps a rate hike open without acting immediately.
Worst case20%
A genuine blockade sends oil prices permanently higher, the Fed raises rates, and the combination of an energy price shock and tightening pushes the economy toward recession.
Best case25%
The situation at Hormuz calms quickly, the oil price falls back and the rate-hike expectation disappears from prices.

Sunday, 12 July 2026GeopoliticsUS launches new wave of strikes against Iran, Tehran widens Gulf retaliation

US launches new wave of strikes against Iran, Tehran widens Gulf retaliation

US Central Command reported a completed new wave of strikes hitting dozens of targets in Iran. Tehran responded with Revolutionary Guard attacks on US positions in several Gulf states, and the Strait of Hormuz remained effectively blocked.

On July 12, US Central Command said its latest wave of strikes against Iran had ended and had hit dozens of targets. In return, Iran's Revolutionary Guards reported strikes against US facilities in Jordan, Bahrain and Kuwait, while the Strait of Hormuz remained largely closed to regular traffic. Western and Arab sources (AP, AFP, Daily Sabah) describe a dangerous spiral with no discernible line of de-escalation. State-linked Xinhua stresses US aggression, while a commentary in Israel's Haaretz argues that killing Khamenei has strengthened the regime rather than toppled it. The New York Times puts into context how Trump's earlier Iran deal effectively failed to secure control over the waterway. The range of sources is broad, but on concrete casualty and hit figures it depends largely on claims from the warring parties, which cannot be independently verified.

Associated PressNew York TimesDaily SabahHaaretzXinhua

Forecast · Assessment

Most likely60%
The exchange continues with limited strikes and counterstrikes, Hormuz stays intermittently closed, without an openly declared war or a negotiated settlement.
Worst case15%
Iran sinks or damages a ship in the strait or hits a US base hard, prompting Washington to respond with a broad strike campaign and a regional war breaks out.
Best case25%
Gulf states and mediators force a ceasefire, Hormuz is reopened and both sides return to the negotiating table.

Saturday, 11 July 2026GeopoliticsUkraine expands war capacity: secret drone factory in Germany and attacks on Russian oil tankers

Ukraine expands war capacity: secret drone factory in Germany and attacks on Russian oil tankers

According to reports, a secret factory in Germany is producing AI drones for Ukraine, with the involvement of the defense start-up Helsing. At the same time, Ukraine reportedly attacked Russian oil tankers in the Sea of Azov. Kyiv is thus increasingly shifting the war onto Russia's supply lines and exports.

Ukraine is expanding its military capabilities on several fronts: according to corroborating reports, a secret factory in Germany is producing AI-assisted drones for the Ukrainian armed forces, with the defense start-up Helsing playing a central role. This brings European high technology directly into Ukraine's war logistics. In parallel, Ukraine reportedly attacked Russian oil tankers in the Sea of Azov, continuing its strategy of hitting Russia's energy revenues and supply lines. This approach has shown effect lately, as strikes on refineries have noticeably squeezed Russian processing capacity and triggered fuel shortages inside the country. From the Russian point of view, the tanker attacks are likely to be seen as an escalation, and independent confirmation of the damage is still pending. The reports rest in part on individual outlets (Berliner Zeitung, NYT DealBook), so details are still to be treated with caution. Against the backdrop of Putin's rejection of new peace overtures, the situation is deteriorating further.

New York Times (DealBook)Berliner ZeitungBerliner Zeitung

Forecast · Assessment

Most likely55%
Ukraine continues its deep-strike and tanker attacks and expands drone production further with European partners.
Worst case20%
Russia retaliates for the tanker attacks with massive strikes and widens the front, putting a peace settlement far out of reach.
Best case25%
The growing pressure on Russia's economy brings Moscow to the negotiating table after all.

Saturday, 11 July 2026EconomyUS inflation data and Fed candidate Warsh set the tone for the July rate decision

US inflation data and Fed candidate Warsh set the tone for the July rate decision

The upcoming US inflation figures and the role of Kevin Warsh, floated as Fed chair, are shaping expectations for the central bank's interest-rate decision in July. Investors are weighing easing inflation against the risks posed by the Iran tensions. The Fed is under growing political pressure.

Ahead of the US central bank's July meeting, markets are focused on two factors: the new inflation data and the personnel question of Kevin Warsh, floated as a possible future Fed chair. Together, according to Bloomberg, they set the tone for the rate decision. One camp expects that easing inflation will open room for rate cuts, which would support stocks and bonds. The other camp warns that the renewed flare-up of Iran tensions could bring inflation back via higher energy prices and force the Fed to be cautious. At the same time, the central bank is under political pressure, as the debate over its leadership and independence continues. For investors, the mix remains tricky, because geopolitical risks and economic data pull in different directions. The reporting here draws above all on Bloomberg as a financial source.

Bloomberg

Forecast · Assessment

Most likely55%
The Fed stands still in July or only cautiously hints at easing, waiting for further data and the situation in Iran.
Worst case20%
An oil-price shock from the escalation in the Gulf drives inflation up and forces the Fed onto a hard course.
Best case25%
Inflation clearly cools, the Fed signals rate cuts and the markets breathe a sigh of relief.

Saturday, 11 July 2026GeopoliticsUS strikes Iran after Tehran fires on a ship in the Strait of Hormuz

US strikes Iran after Tehran fires on a ship in the Strait of Hormuz

The United States has struck targets in Iran after Iranian forces opened fire on a container ship in the Strait of Hormuz. The strike came just hours after a meeting between the foreign ministers of Iran and Oman on reopening the waterway. The fragile ceasefire in place since the early-summer war is wavering once again.

After weeks of relative calm, the conflict in the Gulf is flaring up again: Iran fired on a container ship in the Strait of Hormuz, prompting US forces to respond with heavy strikes against Iranian targets. The timing is delicate, as the attack came just hours after a meeting between the foreign ministers of Iran and Oman that was precisely about reopening the strait to traffic. Washington casts the strike as a defense of commercial shipping and a response to Iranian aggression. Tehran had previously threatened repeatedly to impose fees and conditions on passage, which the United States consistently rejected. In parallel, there is dispute over earlier Israeli strikes on Iranian steel plants: Israel justified them on grounds of military utility, but the strikes also hit the civilian economy, reopening the question of what constitutes a legitimate target. The available sourcing here relies heavily on US reporting (New York Times), with scarcely any Iranian counter-account available. A great deal is at stake for the global market, as a fifth of the world's oil flows through the strait.

New York TimesNew York Times (Live)New York Times

Forecast · Assessment

Most likely60%
After limited retaliatory strikes, a tense but sustained de-escalation returns; shipping continues under heightened risk.
Worst case15%
Iran blockades or mines parts of the strait, the oil price spikes abruptly and a broader regional war looms.
Best case25%
Oman and other mediators stabilize a ceasefire, and passage quickly returns to normal.

Friday, 10 July 2026GeopoliticsStrait of Hormuz: attacks on ships drive up the oil price

Strait of Hormuz: attacks on ships drive up the oil price

After attacks on three merchant ships in the Strait of Hormuz, the oil price has risen above its pre-war level. Shipowners are eager to get their vessels through the strait but fear mounting risks. The United States and Iran are vying for control of the strategic passage.

The Strait of Hormuz, through which a large share of the world's oil transport passes, has once again become a flashpoint. Attacks on three commercial ships within a few days have pushed the crude oil price above the level seen before the recent hostilities. Shipping companies face a dilemma: they are eager to move their freighters through the strait but find themselves exposed to rising dangers. According to the New York Times, one manager describes the situation as getting "uglier by the minute." In the background, the United States and Iran are competing for control of the passage after Iran in early July ordered tankers to use only approved routes. The reporting here relies largely on the New York Times, with a broader base of sources lacking on this day.

New York Times (Shipping)New York Times (Ölpreis)

Forecast · Assessment

Most likely55%
Tensions persist, the oil price remains volatile and elevated, and shipowners factor in risk premiums and detours.
Worst case20%
The strait is effectively closed at times, the oil price spikes abruptly, and a direct US-Iran clash looms.
Best case25%
A quiet de-escalation secures passage, the attacks end, and the oil price falls back.

Friday, 10 July 2026GeopoliticsRussia's fuel crisis deepens amid Ukrainian drone strikes

Russia's fuel crisis deepens amid Ukrainian drone strikes

Russia, one of the world's largest oil producers, now has to import gasoline and is struggling with supply shortages. Ukrainian drone strikes on refineries have severely dented processing capacity. Consumer gasoline prices rose by 6.88 percent in June 2026 and are nearly 20 percent higher than a year earlier.

Despite vast crude oil reserves, Russia is experiencing an acute fuel crisis: in several regions, residents report long lines and fuel-card rationing. The cause is that Russian crude cannot be turned into sufficient quantities of gasoline because Ukrainian drone strikes are crippling key refineries. Citing exchange data, Meduza puts the price increase at 6.88 percent in June 2026 alone, nearly 20 percent more than a year ago. The crisis developed within a month, and there is no end in sight. Fittingly, Ukrainian President Zelensky signed a decree creating a dedicated "long-range capability command" against Russia, meant to institutionalize deep strikes. From the Russian perspective, the situation is publicly played down; independent data here rely mainly on the Kremlin-critical outlet Meduza and the Berliner Zeitung, which makes the perspective somewhat one-sided.

Berliner ZeitungMeduza (Analyse)Meduza (Preise)Meduza (Selenskyj)

Forecast · Assessment

Most likely55%
The shortages persist for weeks as Russia expands imports and export bans, while Ukraine continues its strikes on refineries.
Worst case25%
Supply collapses in some regions, leading to rationing and unrest, and Russia escalates militarily in response.
Best case20%
Russia quickly repairs refinery capacity and stabilizes the market through imports, and prices calm down.

Thursday, 9 July 2026GeopoliticsNew U.S.-Iran strikes cause Hormuz traffic to collapse

New U.S.-Iran strikes cause Hormuz traffic to collapse

After fresh attacks, the number of ships on the U.S.-backed Hormuz route drops sharply, many of them oil and gas tankers. Markets are growing more doubtful about the fragile ceasefire.

A renewed round of strikes between the United States and Iran has caused a sharp drop in traffic through the Strait of Hormuz. BBC data show a noticeable decline in ships, many of them oil and gas tankers, using the U.S.-backed route. The shipping company Maersk announced it would resume its Middle East to U.S. East Coast connection, but via the Suez Canal, suggesting a detour around the danger zone. Nervousness is returning to financial markets: investors had previously relied on the fragile ceasefire between Washington and Tehran, but the new fighting exposes cracks in that calculation. The sources here mix Western and Turkish reporting, and a comprehensive picture of the military situation remains thin for now.

BBC NewsNew York TimesDaily Sabah

Forecast · Assessment

Most likely55%
The ceasefire holds but stays fragile, ship traffic remains subdued and carriers keep diverting to longer routes, nudging freight and energy prices slightly higher.
Worst case20%
The strikes escalate into a broader confrontation, the Strait of Hormuz becomes temporarily impassable and oil prices jump sharply.
Best case25%
Diplomatic pressure quickly stabilizes the ceasefire, traffic returns to normal and markets calm down again.

Wednesday, 8 July 2026GeopoliticsTrump Declares Iran Ceasefire Over, Oil Price Jumps

Trump Declares Iran Ceasefire Over, Oil Price Jumps

US President Trump declared the provisional ceasefire with Iran “over,” but said he would still allow talks to continue. Oil prices thereupon shot up by nearly six percent.

Trump’s announcement that the interim agreement with Tehran was “over” triggered an abrupt price jump of almost six percent on commodity markets, as traders priced in a renewed escalation in the Gulf. At the same time, Trump left the door open for further negotiations, letting his statements oscillate between threat and negotiating tactic. The Economist notes that Iran’s ultranationalist new leadership may even welcome Trump’s bluster, because it serves them domestically. In parallel, according to the Economist’s Middle East correspondent, the regime is staging its power inward with a mega state funeral. Whether an actual change of course lies behind the forceful rhetoric or merely negotiating pressure remains open; the factual basis rests above all on Trump’s own statements and the market reaction to them.

Daily SabahThe EconomistThe Economist

Forecast · Assessment

Most likely55%
It stays at verbal escalation without open war; after the initial shock the oil price partly settles back down, as long as no concrete military steps follow.
Worst case20%
The termination turns into a genuine confrontation in the Gulf, threatening the Strait of Hormuz and driving oil prices up for the long term.
Best case25%
The still-open door to negotiations leads to a more durable agreement, and the markets calm down again quickly.

Tuesday, 7 July 2026EconomyRussia: Fuel Shortage Drives Motorists to Convert to Autogas

Russia: Fuel Shortage Drives Motorists to Convert to Autogas

In Russia, more and more motorists are having their vehicles converted to liquefied petroleum gas (LPG) after Ukrainian attacks on refineries caused nationwide gasoline shortages and rising prices. Queues are forming outside workshops.

Ukrainian attacks on Russian refineries have led to gasoline shortages and rising fuel prices nationwide, prompting more and more Russians to have their cars converted to liquefied petroleum gas (LPG). Queues are forming outside such workshops, as autogas is considered a cheaper and more available alternative. The development is a visible sign of how Ukrainian deep strikes are hitting the Russian war economy in everyday life and straining the supply situation. The report comes solely from the state-aligned Turkish Daily Sabah, which describes the extent of the shortages; independent confirmation of the scale is missing in this source situation, and official Russian bodies as a rule deny such problems.

Daily Sabah

Forecast · Assessment

Most likely60%
The shortages persist as long as Ukrainian attacks hit the refineries; prices stay high and discontent among the population grows.
Worst case15%
Escalating outages trigger a broad supply crisis with rationing and economic pressure on the war effort.
Best case25%
Russia stabilizes supplies through repairs and imports, so that the shortages ease quickly.

Monday, 6 July 2026EconomyWorld Weathers Historic Oil Shock, but Depleted Reserves Carry Risks

World Weathers Historic Oil Shock, but Depleted Reserves Carry Risks

Since the start of the Iran war, more than a billion barrels of oil have vanished from the market, yet the world economy has so far coped with the shock surprisingly well. At the same time, Turkey’s central bank reports that strong exports have offset the war-driven rise in energy imports.

After the Iran war, the global oil market is proving more resilient than feared. According to Daily Sabah, the world economy has absorbed the disappearance of more than a billion barrels since the start of the war unexpectedly well, among other things by drawing on reserves. But that is precisely where the risk lies: the heavily depleted stocks offer barely any buffer left, so the danger of sharp price jumps continues to hang over the market. At the country level, Turkey’s central bank, the CBRT, reports that robust exports and weaker non-energy imports largely offset the war-driven surge in energy import costs in the second quarter, which supported the trade balance. Both reports come from the same state-aligned Turkish source; an independent or Western check on the optimistic reading is missing and should be kept in mind.

Daily Sabah (Oelschock)Daily Sabah (CBRT)

Forecast · Assessment

Most likely55%
Prices remain stable for now, but as reserves keep falling, vulnerability to swings from any new disruption increases.
Worst case20%
A new supply shock or an escalation in the Gulf meets empty buffers and triggers a sharp price increase with inflationary consequences.
Best case25%
Outages are replaced by additional output from other producers, reserves are replenished, and the market normalizes.

Sunday, 5 July 2026EconomyOPEC+ raises output again as the Strait of Hormuz calms down

OPEC+ raises output again as the Strait of Hormuz calms down

OPEC+ has agreed another oil-production increase for August, pumping additional volumes into a market with falling prices. At the same time, shipping traffic through the Strait of Hormuz is gradually returning to normal after the Iran war. Energy-dependent India is responding by expanding its domestic output.

According to a statement issued on Sunday, the OPEC+ group has agreed a further production increase for August, continuing its course of supply expansion even though oil prices are already falling. From the perspective of the state-aligned Turkish outlet Daily Sabah, this is possible because traffic through the Strait of Hormuz is gradually returning to normal after the war between Israel, the United States and Iran, easing the acute fear of a blockade. For producer nations, the combination of higher volumes and lower prices means declining revenue per barrel, a sign that market share currently takes priority over price support. India, one of the largest importers, is drawing consequences from the war's supply shock and, according to its oil minister, is expanding its domestic exploration to reduce its dependence on the Gulf. The sources here are one-sided and close to the Turkish state, which stresses the relaxed reading of the Hormuz situation; independent confirmation of the extent of the normalization is lacking. What is clear is that energy markets are trying to reorganize themselves after the extreme weeks of June.

Daily SabahDaily Sabah

Forecast · Assessment

Most likely60%
Shipping traffic through Hormuz continues to normalize and oil prices remain under pressure, while OPEC+ sticks to its course of expanding volumes.
Worst case15%
A new incident in the Gulf or an Iranian threat causes the Strait of Hormuz to escalate again, driving oil prices sharply higher.
Best case25%
The situation stabilizes for the long term, low energy prices dampen global inflation and importing countries such as India gain room to maneuver.

Saturday, 4 July 2026EconomyOil Price Falls Below 70 Dollars as War Premium Fades

Oil Price Falls Below 70 Dollars as War Premium Fades

At the start of July, the Brent spot price fell below 70 dollars per barrel, back to its level from before the Iran conflict. The recovery of shipping through the Strait of Hormuz caused the war premium to melt away. In June, Brent had still averaged 85 dollars.

In the days around 4 July 2026, the decline in oil prices continued: the Brent spot price fell below 70 dollars per barrel on 1 July, back to its level from before the conflict that began on 28 February. The reason was the recovery of shipping through the Strait of Hormuz, after the United States and Iran had signed a Memorandum of Understanding on 18 June to end the conflict and open the strait. As a result, the previously priced-in war premium melted away. In June, the Brent price had still averaged 85 dollars, around 22 dollars below the May average. Heading into the weekend, the market was reportedly on course for its fourth consecutive week of losses. The price figures come from market reports by The National, CNBC and the EIA; the trend remained fragile given the unresolved Hormuz question and reversed again over the further course of the month.

The NationalU.S. EIA

Forecast · Assessment

Most likely45%
A lasting agreement secures the open strait, prices stabilize at a low level and ease the burden on consumers and inflation.
Most likely35%
A lasting agreement secures the open strait, prices stabilize at a low level and ease the burden on consumers and inflation.
Most likely20%
A lasting agreement secures the open strait, prices stabilize at a low level and ease the burden on consumers and inflation.