Oil edged higher after reported fresh Iranian strikes on US bases in Kuwait and Bahrain; Brent and WTI closed July up nearly 20%

Iranian media reported on Friday, 31 July 2026, citing Iran's army, that it had targeted the Ahmad al-Jaber Air Base in Kuwait with drones, aiming at fighter aircraft hangars, satellite communications systems and equipment depots. On Thursday, 30 July, Iran said it had targeted US facilities at Bahrain's Sheikh Isa Air Base. No independent assessment of the damage from these attacks had been published as of this summary.

The developments dimmed hopes from earlier in the week of a swift return to diplomacy and kept oil prices in the upper $80s a barrel. Working the other way, reports of larger crude volumes exiting the Strait of Hormuz have held prices below $90. The number of tankers crossing Hormuz remains a fraction of traffic before the conflict began on 28 February, but any news of improvement, regardless of its size, pushes futures prices lower.

Despite the pullback over the final two sessions, both Brent and West Texas Intermediate closed July with gains of close to 20% and ended the week higher as well. In a development read as bearish for oil, Saudi Arabia said this week it is seeking partners for a coalition to strengthen security in the Bab el-Mandeb Strait and the Gulf of Aden, and according to Riyadh 14 countries, including Türkiye, Pakistan, Egypt, Sudan and Djibouti, have formally supported the initiative.