Oil prices surged to $100 per barrel following renewed US and Iranian attacks in the Gulf and Houthi rebel strikes on Saudi oil tankers in the Red Sea. This escalation threatens key shipping routes like Bab el-Mandeb, potentially doubling the blow to global energy markets after the Strait of Hormuz crisis and leading to higher consumer fuel costs worldwide.
ONGC's board has approved the development of a 1.75 million tonne strategic petroleum reserve at Mangaluru, enhancing India's emergency crude oil storage capacity amidst global turmoil and reliance on imports.
Global oil prices surged over 1% as US President Trump declared the ceasefire with Iran "over" and fresh US military strikes heightened fears of supply disruptions. Brent crude rose to $79.04 and WTI to $74.46.
Saudi Arabia has slashed the August price of its flagship Arab Light crude for Asian customers by $11 per barrel, the largest reduction in over 20 years. This move reflects weakening demand, improved supply conditions post-Middle East tensions, and increased competition.
The UAE has announced a sharp reduction in petrol and diesel prices for July 2026, effective July 1. This marks the end of a four-month price increase streak, offering relief to motorists and businesses.
Carlyle's Jeff Currie warns global oil markets are near minimum operating levels due to the Iran war, with Asia already affected, Europe facing strains soon, and potential U.S. shortages by July. He dismisses tax cuts as insufficient, stressing the need to increase physical supply and reopen the Strait of Hormuz.
The US and Iran are reportedly close to a 60-day ceasefire agreement that would reopen the Strait of Hormuz, allow Iran to resume oil exports, and include talks on curbing its nuclear program, according to Axios.
Iran has presented a list of demands for a ceasefire with the US. These include lifting sanctions, compensation for damages, and the withdrawal of American troops. President Trump has rejected these terms as unacceptable. The standoff has impacted global oil markets and heightened regional tensions. Diplomatic efforts continue amidst ongoing clashes.
The UAE's planned departure from OPEC is being described as 'the beginning of the end' for the organisation, occurring amid unprecedented oil market volatility triggered by the US-Israel war with Iran. The UAE, the world's third biggest oil exporter and fourth largest producer at 3.1 million barrels daily, could increase production by around one million barrels per day after leaving. OPEC's share of global crude oil has fallen from 52.5% in 1973 to just 36.7% in 2025, with the Strait of Hormuz effectively closed for eight weeks further complicating exports.
The UAE's potential for increased oil production flexibility is expected to benefit major importers like China, potentially lowering prices and deepening energy trade relations between the two nations.
