Traders assessed ongoing global conflicts and supply threats from the Persian Gulf to the Black Sea region, as crude oil posted its largest monthly gain since March. Brent futures for the most active contract settled 1.2% higher, near $88 per barrel, while WTI rose 1% to settle below $85 per barrel. In post-settlement trading on Friday afternoon, WTI briefly climbed above $86 per barrel following a CBS News report that the United States and Israel are preparing to strike Iranian energy targets. Earlier, U.S. President Donald Trump indicated he is losing confidence in Iranian negotiators. This latest statement suggests armed conflict could drag on, potentially further disrupting Middle East energy transport.

Attacks on multiple oil-laden vessels near the Caspian Pipeline Consortium (CPC) terminal on Russia's Black Sea coast also added upward pressure on oil prices. Energy markets broadly surged in July, with the global benchmark Brent crude gaining nearly 24% for the month. Fuel products such as diesel and natural gas also posted significant increases. U.S. oil giant Chevron stated that the global refining system would struggle to compensate for a large-scale supply disruption, and fuel production profit margins are expected to remain high.

The fragile ceasefire between Washington and Tehran collapsed in July, with Yemen's Houthi rebels joining the fray, adding new risks to oil shipments through the Red Sea. There remains significant uncertainty about the safety of crude exports via the CPC, which handles the majority of Kazakhstan's oil exports and is a key supply source for European refiners. The CPC will continue oil operations, according to sources, after discussions on Friday about whether to indefinitely suspend oil loadings. No party has claimed responsibility for the series of attacks, though Ukraine has previously targeted oil tankers in Russia's Black Sea waters.

"Global supply is becoming tighter, relying on surplus U.S. crude and refined products to balance the market, to the point that U.S. physical supply is tightening much faster than it was a few weeks ago," said Scott Shelton, an energy expert at TP ICAP Group. However, despite the renewed U.S.-Iran conflict and continued threats to shipping through the Strait of Hormuz, there are signs that the volume of crude transported via this waterway is recovering.

WTI September futures rose 1.3% to settle at $84.67 per barrel, while Brent October futures gained 1.2% to settle at $87.93 per barrel. The September futures contract, expiring on Friday, settled at $90.12 per barrel.