OIL Market Update
03 Jul 2026 • 00:44 GMT
Oil prices have risen sharply, reaching near $97.93 per barrel, their highest in 30 days. This increase is driven by ongoing disruptions in Middle East oil production and shipping, especially through the Strait of Hormuz, which is now a major concern due to recent escalations in regional tensions. The current price remains slightly below its three-month average of around $100.6, but the volatility has been significant, with recent trading ranges spanning over 20%.
The geopolitical situation suggests that if these supply disruptions continue or escalate, oil prices could move toward or even above $100, with some analysts warning of potential rises toward $120 if supply remains tight. Higher oil prices tend to support currencies of major oil-exporting countries like Canada, Russia, and Norway, which have seen strength against the US dollar amid these developments.
For now, market participants should watch for any news on Middle East tensions and supply concerns, as these will likely continue to influence oil prices and related currencies in the coming days.