OIL Market Update
02 Jul 2026 • 00:43 GMT
Oil prices have climbed back near 30-day highs, currently close to $97.93 per barrel. This rally comes amid ongoing concerns over supply disruptions caused by conflicts in the Middle East, especially through key shipping routes like the Strait of Hormuz. The recent escalation has driven oil prices above $97, a level not seen in a month, although they remain slightly below the 3-month average of around $100.7.
The increased tensions and potential for extended disruptions could push prices higher, possibly approaching $120 if the situation worsens. This has significant implications for energy-importing countries, which might see their currencies weaken further as energy costs stay elevated. Conversely, oil-exporters such as Canada, Russia, and Norway are likely to benefit from any sustained price increases.
Meanwhile, a stronger US dollar, driven by optimism over a potential Fed rate hike later this year, has kept oil somewhat subdued compared to recent peaks. Overall, market watchers should monitor geopolitical developments and energy prices closely, as these factors are crucial in shaping currency and commodity markets in the coming weeks.