Crude oil prices rose 1% on Friday to around $85 a barrel, capping a more than 20% gain in July, its strongest monthly increase since March, driven by escalating geopolitical tensions and growing concerns over global oil supplies. Iran claimed it attacked two tankers transiting the Strait of Hormuz under US military escort, though Western maritime authorities have not confirmed the incident. Renewed conflict between the US and Iran, Houthi attacks in the Red Sea, and Saudi strikes on Iran-backed groups have heightened risks to key shipping routes. Falling US crude inventories have added further upward pressure on prices. Meanwhile, attacks near Russia’s Black Sea oil export infrastructure, including the Caspian Pipeline Consortium (CPC) terminal, have raised concerns about disruptions to Kazakhstan’s oil exports, an important source for European refiners. Although the CPC decided to continue operations, uncertainty over supply security continues to support higher oil prices.
The Indian rupee rose to around 95.3 per dollar, extending gains for a fifth consecutive session to a three-week high as the greenback weakened and crude oil prices continued to retreat. Pressure on India's import bill eased after the US dollar posted its biggest one-day decline in three months, while Brent crude futures slipped about 1% to around $88 per barrel amid expectations of a Saudi Arabia-led maritime coalition to strengthen security cooperation in the Red Sea. The currency also remained supported by persistent intervention from the Reserve Bank of India, with traders pointing to continued dollar sales after the central bank intervened aggressively last Friday. Still, market participants cautioned that further appreciation could remain limited if oil prices rebound amid ongoing tensions between the US and Iran.
