Oil Futures Mixed, Traders Assess Mideast Developments


   
Maria Eugenia Garcia
DTN Energy Editor

   HOUSTON, TX (DTN) --Oil futures traded mixed on Monday (7/20) as investors 
assessed competing signals from the Middle East, an escalating exchange of 
attacks between the U.S. and Iran, against reports that both countries could 
enter diplomatic negotiations toward a temporary ceasefire.

   Early Monday, oil futures dropped following the comments of the Iranian 
Foreign Ministry signaling Tehran was open to returning to the negotiating 
table, fueling optimism that diplomatic efforts could produce a 10-day 
ceasefire to allow for new talks.

   The decline proved short-lived after Yemen's Iran-backed Houthi militia 
announced it would impose maritime navigation ban on Saudi Arabia, reigniting 
concerns about global supply disruptions. Houthi attacks on commercial vessels 
between late 2024 and 2025, sharply reduced traffic in the Suez Canal, forcing 
shippers to reroute around the Cape of Good Hope. Attacks from Yemen against 
shipping in the region could jeopardize millions of barrels per day of crude 
oil exports that have been rerouted to ports on the Red Sea.

   Oil flows from the Middle East have already plummeted with the ceasefire 
collapse. Ship tracking data showed that only four vessels transited the strait 
Sunday. During the U.S.-Iranian truce, following the initial wave of leaving 
laden tankers, an average of 20 to 30 vessels per day traversed the chokepoint, 
compared to a rate of more than 120 per day before the outbreak of the war on 
February 27.

   Separately, the U.S. Energy Information Administration has reported no crude 
imports from Iraq or Saudia Arabia in recent weeks, reflecting the disruption 
caused by the renewed blockade of the Strait of Hormuz.

   The NYMEX WTI futures contract for August delivery rose $0.35 to $82.84 bbl, 
while the  ICE Brent futures contract for September delivery increased $0.60 to 
 $88.70 bbl.

   Front-month NYMEX ULSD futures for August delivery rose $0.0420 to $4.1066 
gallon, and front-month RBOB futures edged down $0.0062 to $3.3865 gallon.

   The US dollar index strengthened by 0.174 points to 100.76 against a basket 
of foreign currencies.




(c) Copyright 2026 DTN, LLC. All rights reserved.