OIL Market Update
23 Jul 2026 • 00:43 GMT
Oil prices remain highly volatile amid ongoing Middle East tensions and shipping disruptions. Currently, oil is trading around $97.93 per barrel, which is about 2.5% below its 3-month average of $100.40. Prices have swung sharply in recent weeks, reaching as high as $109.20 and dropping to $91.12, reflecting the unsettled market environment.
The escalation of conflict in the region, especially around the Strait of Hormuz, continues to support higher oil prices, with the potential for further gains if supply disruptions persist. Current developments suggest that if tensions escalate further, oil could push above $100 and possibly towards $120 per barrel, which would likely strengthen currencies of major oil-exporting countries like the Canadian dollar, Russian ruble, and Norwegian krone.
Meanwhile, the US dollar remains supported by safe-haven flows amid geopolitical uncertainties. Keep in mind that higher oil prices tend to lift the dollar, especially if energy costs remain elevated. Traders should monitor oil prices and geopolitical updates closely, as these factors are key drivers in the current market environment.
