Oil prices increased by more than 1% on Friday, July 31, 2026, following Iran's announcement that it had stopped two vessels attempting to exit the Strait of Hormuz. This development has heightened concerns over global energy supplies, especially after a recent drone attack on ships at a Mediterranean Egyptian port.

Iran also reported that four other tankers turned back after its forces intervened, though these claims have not been independently verified. Despite these reports, two large oil tankers loaded from the Gulf were recorded passing through the strait, a critical waterway between Iran and Oman that typically handles about one-fifth of the world's energy shipments. Additionally, two other commodities vessels transited the strait, according to shipping data from Kpler.

Since the start of the five-month-old conflict, Iran has blocked most shipping through the Gulf Strait of Hormuz. Its Houthi allies in Yemen have also begun threatening the Bab el-Mandeb strait at the southern end of the Red Sea, near the Suez Canal, which is a key export route for Saudi crude oil.

Benchmark Brent crude futures were on track to rise 23% in July, with economists and analysts polled by Reuters expecting prices to climb further this year.

There were no new reports of U.S. attacks on Iran between Thursday and Friday, following a recent escalation involving joint U.S.-Saudi strikes on Iranian-allied forces in Iraq. In response, Iran's army stated it targeted U.S. military facilities in Kuwait and Bahrain, citing an attack on a house on Qeshm Island near the Strait of Hormuz.

Meanwhile, Egypt's cabinet reported that an unidentified drone caused a fire on two vessels at the Mediterranean port of Damietta, located over 160 km west of the Suez Canal. No group has claimed responsibility for the attack.

Notable remarks include calls for vigilance against Israeli plots and false-flag operations aimed at undermining regional peace, and affirmations of Egypt's importance as a regional partner.

Sources