Noida, July 17 (APAC Media): Crude oil rose toward $80 per barrel on Friday after fresh U.S. airstrikes reportedly hit Iran’s strategic Chabahar port, intensifying geopolitical tensions in the Middle East and reinforcing concerns over the security of key maritime energy corridors despite expectations of higher global crude supplies.
According to media reports, the latest wave of US strikes appeared to have brought down a surveillance tower overlooking Chabahar port on the Gulf of Oman, a critical commercial gateway linking Iran with Afghanistan and Central Asia. U.S. Defence Secretary Pete Hegseth later shared an image on social media appearing to show the tower collapsing, although the footage had circulated earlier through activist networks.
Brent crude futures for September delivery advanced 0.85% to $84.99 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.89% to $79.65 per barrel. On India’s Multi Commodity Exchange (MCX), crude oil futures settled marginally higher by 0.01% at ₹7,614 per barrel.
Brent, WTI Crude Oil Prices Slip After Three-Day Rally as Iran Tensions Lift Supply Concerns
Iranian state media confirmed that Chabahar had been targeted for a third time but stopped short of acknowledging the reported collapse of the surveillance tower. Iranian authorities maintained that the structure monitored commercial shipping movements, while security analysts noted that the Islamic Revolutionary Guard Corps (IRGC) also maintains operational infrastructure at several Iranian ports.
U.S. President Donald Trump said on Wednesday that Iran had sought a meeting with Washington, claiming that Tehran “always wants to meet,” though no public evidence has emerged to substantiate the assertion.
Asked by a reporter whether his view that negotiations with Iran’s Islamic Revolutionary Guard Corps (IRGC) were no longer possible meant the United States could take military action against the group similar to its campaign against Islamic State (ISIS), Trump did not directly respond to the question.
The latest military action heightened fears of broader disruption across regional shipping lanes, particularly as tensions increasingly threaten vital oil transit routes.
“Geopolitical risks remain the primary driver of oil markets, with traders paying far more attention to developments in the Middle East than underlying supply-demand balances,” said a commodities market analyst.
“Any military action involving strategic ports or major shipping routes tends to trigger an immediate risk premium in crude prices, as investors factor in the possibility of disruptions to global energy supplies,” the analyst added.
Investor sentiment was also supported by reports that Iran had instructed Yemen’s Houthi movement to prepare for potential disruption in the Bab el-Mandeb Strait if the United States expanded strikes to target Iranian power infrastructure.
Concerns over the security of global energy supplies have intensified as vessel traffic through the Red Sea declines following the renewed U.S. naval blockade on Iran, raising fears of further disruptions to key shipping routes.
Supply-side developments, however, offered some restraint. Iraqi crude exports more than doubled to an average of 1.2 million barrels per day during the first half of July, while OPEC+ approved another production quota increase of 188,000 barrels per day from August.
Nevertheless, ongoing regional conflicts, logistical disruptions, and constraints on tanker movements are curbing the pace of actual production growth.
“Although higher production and softer demand forecasts point towards improved market balance, geopolitical uncertainty continues to dominate price direction,” another energy analyst said. “Unless regional tensions ease materially, downside in crude is likely to remain limited as traders continue to factor in elevated supply risks.”
Meanwhile, OPEC revised down its 2026 forecast for global oil demand growth to 780,000 barrels per day, marking its third consecutive downward revision, although the producer group continues to project stronger demand than the International Energy Agency.
U.S. inventory data presented mixed signals. Commercial crude stocks declined by 1.69 million barrels, while gasoline inventories fell by 1.53 million barrels, indicating resilient fuel consumption. Distillate inventories, however, rose by 4.56 million barrels, Cushing crude inventories increased by 430,000 barrels, and refinery utilisation edged higher.
The Strategic Petroleum Reserve fell by around 3 million barrels to 316.5 million barrels, its lowest level since 1983.
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Disclaimer: This article is for informational purposes only. APAC Media is not liable for any investment decisions or losses. Please conduct your own research or consult a financial advisor before investing.
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