HPCL operates an LNG import and regassification facility at Chhara in western India with annual capacity of 5 million metric tons.

Apart from spot purchases, HPCL is looking to import up to 1 million tons per year of LNG for 10 to 15 years, sources with knowledge of the matter said.

Indian Oil, HPCL buy 7 million barrels of crude via tenders, trade sources say

HPCL did not respond immediately to an emailed request for comment.

India wants to raise the share of gas in its energy mix to 15% from about 6% currently to cut its carbon footprint.

HPCL also has a 10-year LNG import deal with Abu Dhabi National Oil Co for 500,000 tons of LNG every year from 2028. The company also buys LNG through spot tenders.

The 20% ethanol-blended petrol, called E20, became the only fuel sold at India’s 90,000 petrol pumps at the end of last year, causing uproar among motorists in the world’s third-largest car market.

Any decision to increase the ethanol share in gasoline will be taken only after “detailed scientific and technical studies” and consultations with stakeholders, including automakers, fuel retailers, and feedstock suppliers, Gopi said in written answers to parliament.

Indian court orders Maruti to replace car in first E20 fuel damage ruling

No rollback of E20

Gopi said there was no plan to revert to E10 or pure gasoline, and the government wanted to move forward with a “superior fuel”.

The government has received no complaints of declining vehicle performance, engine failure, corrosion, and fuel pump issues linked to E20 use, he said, adding that vehicles designed for E10 experience only a marginal 3% to 5% drop in fuel efficiency when using E20.

“Had ethanol blending been causing systemic damage to engines or fuel systems, such failures would have resulted in large-scale warranty claims, service campaigns, and widespread consumer complaints, none of which have been reported.”

Backlash on ethanol-blend fuel intensifies in India, puts carmakers in the dock

Diversifying ethanol feedstocks

To cut dependence on a single crop, India produces ethanol from a range of products, including sugarcane-based feedstocks, maize, damaged foodgrains, broken rice, and foodgrains unfit for human consumption.

The move to diversify is also aimed at shifting production towards less water-intensive crops such as maize, whose share in India’s ethanol programme has risen from zero to 37% in five years to 2025/26.

Gopi said India’s ethanol blending programmes will ensure that water sustainability, food security, and farmers’ interests remain “paramount”.

The listed company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.

“Agritech Limited informs that Sui Northern Gas Pipelines Limited (SNGPL) has suspended RLNG supply to its urea plant with effect from 00:00 hours on 18-07-2026,” read a notice.

The company said the suspension followed a decision by the Government of Pakistan due to disruptions in RLNG supplies arising from the prevailing regional situation.

Agritech did not disclose how long the suspension would last or the potential impact on urea production and financial performance.

Incorporated in 1959 as Pak-American Fertilizers Limited, AGL’s primary business is the production and sale of urea and granulated single super phosphate fertiliser, sold under the brand name “Tara” in the market.

Gas curtailment remains a major concern for Agritech Limited, impacting its ability to service debt and operate at full capacity.

While gas supply to Agritech’s plant was restored in February 2026 after annual turnaround work, it faced another shutdown in April 2026 due to the suspension of gas supply by SNGPL following pipeline damage.

China’s June crude imports slumped 41.3% to their lowest point in almost a decade.

Imports from Malaysia, the largest trans-shipment hub for sanctioned Iranian oil, fell 81% to 1.34 million tons, or 0.33 million bpd.

Imports from Indonesia stood at 2.5 million tons, or 0.61 million bpd.

China imported about 0.1 million tons of crude from Indonesia in 2024, but monthly imports topped 2 million tons in July 2025. Reuters previously reported that rising imports from Indonesia pointed to a way of masking shipments of sanctioned Iranian crude transshipped in waters off Malaysia.

Imports from Saudi Arabia, China’s second-biggest supplier, fell 57% year-on-year to 3.42 million tons, or 0.83 million bpd.

Imports from the UAE and Oman nearly halted in June.

Imports from the UAE plunged 98% to 0.06 million tons, or 0.01 million bpd.

Imports from Oman slumped 96% to 0.13 million tons, or 0.03 million bpd.

Customs data showed no crude imports from the United States, Venezuela or Iran in June. ‑Reuters

Benchmark prices had earlier touched more than one-month highs on concern over disruption to shipments through the Strait of Hormuz.

Brent crude futures were up 18 cents, or 0.2%, at $88.28 a barrel by 1222 GMT after hitting $91.42 for their highest since June 11.

U.S. West Texas Intermediate crude was down 34 cents, or 0.4%, at $82.15 after touching its loftiest level since June 12 at $85.39.

Mediators have passed Iran a proposal to de-escalate the war with the U.S., suggesting a 10-day ceasefire to find ways to revive an interim deal reached last month, a senior Iranian official told Reuters on Monday.

Efforts to restore dialogue between the U.S. and Iran weighed on prices, said Crispus Nyaga, research analyst at Empire FX.

Drop in tanker traffic from Gulf

However, traffic through the Strait of Hormuz has thinned sharply, with only a handful of ships making the passage, he added.

Prices had earlier extended last week’s hefty gains, driven by recent hostilities between the U.S. and Iran that have restricted oil shipments through the strait.

The Middle East conflict escalated over the weekend, with the U.S. conducting a ninth straight night of attacks against Iran while U.S. allies Kuwait and Bahrain reported more Iranian strikes.

The Islamic Revolutionary Guard Corps said on Monday that two oil tankers had been immobilised after explosions as they attempted to transit what it described as an unsafe southern route through the Strait of Hormuz, alleging they had been encouraged by the U.S. military to use that passage.

Reuters was unable to obtain immediate verification of events.

“The supply narrative has become more bearish. The anticipated recovery in shipping has effectively stalled, with Strait of Hormuz transit volumes falling to single digits,” ANZ analysts said in a note.

Four vessels made the transit through the Strait of Hormuz on Sunday, down from eight the previous day, LSEG data showed. At least three oil products tankers and one very large crude carrier have entered the strait since Friday to load oil, the data showed.

Gulf countries boosted crude oil and condensate exports in the first half of July to their highest since before the Iran war began in late February, shipping data showed, though flows through the Strait of Hormuz are slowing as fighting escalates.

The collapse of a U.S.-Iran truce has reignited concerns over energy supplies moving through the strait. Before the Iran war, about 20% of global oil supplies flowed through the waterway. Iran has also pressed the Houthis to close the Red Sea route if the U.S. attacks Iranian power infrastructure.

Crude and condensate exports from Saudi Arabia, the United Arab Emirates, Iraq, Kuwait and Iran rose about 16% from the whole of June’s daily average to 12 million barrels per day (bpd) in the first half of July, Kpler data showed.

Vortexa estimated exports during the period at an even higher 13.06 million bpd.

Saudi Arabia, Iran and Iraq led the increase in the first half of July, Kpler said, while Vortexa estimated Iraq posted the largest month-on-month increase, while UAE exports eased from record June levels.

The rise in Gulf exports prompted a fall in oil prices as supply worries eased after the U.S. and Iran reached an interim deal in mid-June to reopen the strait, the world’s most important shipping route for oil and gas, and pursue a broader settlement to end their war.

The interim accord unraveled in early July over disagreements about the waterway’s administration.

Red sea concern

Shipments through the strait are already declining as strikes by both sides have re-escalated, dropping to just three commodity tankers on Thursday, the fewest daily transits since May, shipping data showed.

“We’re seeing a slowdown in activity, which means that countries will have to reduce output, which decreases the amount of crude that will be shipped,” Kpler analyst Johannes Rauball said.

Even after the rebound, exports remained about 32% below February’s pre-war peak of 17.6 million bpd.

Creating a potentially significant extra risk to global oil supplies, Iran has instructed Yemen’s Houthis to be prepared to disrupt traffic through the Red Sea if the United States targets Iranian energy infrastructure, sources told Reuters on Thursday.

Saudi Arabia has diverted most of its energy exports through its Red Sea port of Yanbu. So far in July, 75% of its 5.29 million bpd crude and condensate were exported from Yanbu, Kpler data showed.

Front-month gas futures for August delivery on the New York Mercantile Exchange rose 2.3 cents, or 0.8%, to $2.881 per million British thermal units (mmBtu). On Thursday, the contract closed at its lowest since May 12.

For the week, the front-month was on track to drop for a fourth week in a row for the first time since February, falling about 2% so far this week.

In a sign the market is not too worried about gas supplies in coming months, the premium of futures for March over April 2027 fell to a record low of around 17 cents per mmBtu.

The industry calls the March-April spread the “widow-maker” because rapid price moves resulting from changing weather forecasts have forced some speculators out of business. Notably, the Amaranth hedge fund lost more than $6 billion in 2006.

Traders use the March-April and October-November spreads to bet on winter weather forecasts and supply and demand. March is the last month of the winter heating season when utilities pull gas out of storage, and October is the last month of the summer cooling season when utilities inject gas into storage.

SUPPLY AND DEMAND

Financial group LSEG said average gas output in the U.S. Lower 48 states rose to 110.3 billion cubic feet per day (bcfd) so far in July from 110.0 bcfd in June, but remained below the monthly record high of 110.6 bcfd in December 2025.

Analysts said mostly mild weather during the spring allowed energy firms to stockpile more gas than usual. As they wait for a federal report on Thursday, analysts projected the amount of gas in storage likely rose to 6.5% above normal during the week ended July 17, up from 6.4% during the previous week.

Meteorologists forecast the weather would remain mostly warmer than normal through August 1, forcing power generators to keep burning lots of gas to keep air conditioners humming. About 40% of U.S. power generation comes from gas-fired plants.

LSEG projected average gas demand in the Lower 48 states, including exports, would hold around 111.5 bcfd for the next few weeks. The forecast for next week was higher than LSEG’s outlook on Thursday.

LNG EXPORTS

Average gas flows to the nine big U.S. LNG export plants held at 17.4 bcfd so far in July, the same as in June, remaining below the monthly record high of 18.8 bcfd in April.

Under pressure to explain rising fuel costs as global oil prices surge, the government on Friday announced a new transparency measure under which the Oil and Gas Regulatory Authority (Ogra) will review petroleum prices daily and publish pricing data on its website to support weekly fuel price calculations.

In this regard, Malik today chaired a high-level meeting with key stakeholders, including the Oil and Gas Regulatory Authority (OGRA), the Oil Companies Advisory Council (OCAC), the Oil Marketing Association of Pakistan (OMAP), Refineries, and Oil Marketing Companies (OMCs). Senior officials of the Petroleum Division were also present.

The meeting was convened to brief industry stakeholders on the new pricing mechanism transitioning from a weekly to a daily basis and obtain first-hand feedback on implementation challenges and any teething issues to ensure a smooth transition, read a statement.

The reform marks a significant step towards deregulation of Pakistan’s petroleum sector, aimed at enhancing transparency, ensuring consumer protection, and fostering a more competitive market environment, it added.

During the meeting, Malik informed participants that the reform has been undertaken on the directive of the prime minister and approved by the federal cabinet as part of the government’s commitment to move towards a rules-based petroleum regime. Under the new mechanism, retail prices will be determined through a transparent, formula-based process anchored in market fundamentals, insulating consumers from price shocks influenced by political expediency.

Speaking on the occasion, Malik said that the implementation of the daily petroleum pricing regime represents a fundamental shift towards a market-driven, competitive economy. By decoupling petroleum prices from the weekly announcement cycle and mandatory government approval, we are reducing the potential for market abuse and windfall gains.

The meeting was informed that the daily pricing mechanism will provide greater transparency and fair pricing for consumers while shifting the focus from political intervention to market realities.

Participants were also briefed that the reform is a key component of the government’s phased deregulation strategy to gradually reduce government intervention and allow market forces to determine petroleum prices, similar to the daily movement of exchange rates.

The minister emphasised that the Petroleum Division, in close consultation with OGRA and industry stakeholders, is developing comprehensive Standard Operating Procedures (SOPs) to facilitate the transition.

Technical matters, including the Inland Freight Equalisation Margin (IEFM), refinery adjustments, and true-up mechanisms, are being addressed collaboratively to ensure seamless implementation.

OGRA informed the meeting that it is fully aligned to implement the new pricing regime and is upgrading its internal processes and data dissemination systems.

The meeting also reviewed operational aspects of the transition, including supply chain logistics, inventory management, and the availability of real-time data.

The government assured industry stakeholders of its full support in addressing operational challenges. A dedicated committee has been constituted to oversee the transition process and resolve implementation issues through consensus.

During the meeting, representatives of OCAC, OMAP, refineries, and OMCs shared their views and highlighted certain operational concerns regarding the implementation of the daily pricing mechanism. The Minister assured participants that all genuine concerns would be addressed through continuous consultation and collaborative engagement.

The minister directed the Petroleum Division and OGRA to hold follow-up meetings with industry representatives to further refine the technical formula, address any remaining concerns and teething issues, and ensure the successful rollout of the daily petroleum pricing regime.

Brent crude futures settled USD 3.87, or 4.59 percent, higher to USD 88.10 a barrel, while US West Texas Intermediate futures rose USD 3.54, or 4.48 percent, at USD 82.49. Both were at their highest since mid-June.

For the week, both benchmarks gained about 16 percent, with Brent on track for a third consecutive weekly gain and WTI set for its second.

The two foes expanded fighting on Friday, with the US striking bridges and an airport in Iran and Tehran hitting a power and desalination plant in Kuwait. Iran said it launched more strikes on US facilities in the Middle East, including the first direct attack in Syria, after a sixth straight night of US strikes on Iranian military facilities.

READ MORE: Oil rises on renewed US-Iran hostilities and threat of Red Sea closure

“The market is reacting to the increasing hostilities between Iran and the United States that have

culminated this week with nightly attacks on Iranian infrastructure and retaliation by Iran on its neighbors’ infrastructure,” said Andrew Lipow, president of Lipow Oil Associates. “If more tankers come under fire and become damaged, we’re going to see oil prices continue to move up as shipowners simply refuse to enter the Persian Gulf.” The collapsed truce between the US and Iran has resulted in a sharp decline in oil flows in the strait as Iran targets vessels transiting through it.

Before the Iran war, about 20 percent of global oil supplies flowed through the waterway. Iran has pressed the Houthis to close the Red Sea route if the US attacks Iran’s power infrastructure.

“Given that so much of Saudi Arabia’s exports have been redirected to the port of Yanbu via the East-West Pipeline to avoid Hormuz, any such development is a threat indeed,” Tamas Varga, analyst at PVM Oil Associates, wrote in a note. Saudi Arabia has diverted more than 70 percent of its normal daily crude exports to the Red Sea port of Yanbu since the beginning of the war.

Shipments from Yanbu averaged 4 million barrels per day in recent weeks, up from around 973,000 bpd in the same period last year.

Qatar’s defence ministry said its armed forces thwarted an Iranian missile attack early on Friday and the interior ministry said a child was wounded by shrapnel resulting from interception operations. In a different conflict zone, Ukraine’s military said it struck a Russian oil refinery in the Yaroslavl region on Thursday.

Despite the drop in generation, the average cost of electricity surged by 14 percent to Rs8.9885 per kWh in June 2026, up from Rs7.8698 per kWh in June 2025.

Hydel generation fell by 3 percent to 5,242 GWh in June 2026, accounting for 39.03 percent of total generation, compared to 5,410 GWh in June 2025.

The decline is attributed to a fault at the Tarbela generation facility.

Based on the local coal, the electricity generation decreased by 10 percent to 1,358 GWh from 1,510 GWh. However, generation from imported coal rose by 21.6 percent to 1,699 GWh, up from 1,397 GWh in the corresponding month last year.

The Independent System and Market Operator (ISMO) also allowed generation from high-speed diesel (HSD) and residual fuel oil (RFO) at significantly higher costs of Rs57 per kWh and Rs52 per kWh, respectively, in June 2026. In comparison, the National Power Control Centre (NPCC) generated 151 GWh from RFO in June 2025 at Rs29 per kWh, indicating an increase of around 80 percent in RFO-based generation cost.

Generation from indigenous gas declined by 10.5 percent to 867 GWh in June 2026 at Rs13.6820 per kWh, compared to 968 GWh in June 2025.

RLNG-based generation also dropped sharply to 1,480 GWh (11.02 percent share) in June 2026 from 2,216 GWh in June 2025. Meanwhile, its cost rose to Rs35.51 per kWh from Rs21.87 per kWh, reflecting an increase of 62 percent.

In contrast, nuclear power generation recorded a significant increase of 31.5 percent, reaching 1,800 GWh (13.40 percent share) in June 2026 compared to 1,383 GWh in June 2025.

Pakistan imported 47 GWh of electricity from Iran during June 2026 for Rs27.6635 per kWh, compared to the same volume at Rs22.5155 per kWh in June 2025, marking a 23 percent increase in price.

Among renewable sources, wind power generation rose by 29.5 percent to 676 GWh from 522 GWh, while bagasse-based generation increased to 46 GWh from 35 GWh. Solar generations saw a marginal rise to 110 GWh from 106 GWh.

According to CPPA-G data, total electricity generation stood at 13,413 GWh in June 2026, down from 13,744 GWh in June 2025. Delivered energy was recorded at 13,066 GWh at an average cost of Rs8.9138 per kWh, compared to 13,310 GWh at Rs7.6800 per kWh in the corresponding month last year.

CPPA-G has sought a positive fuel cost adjustment (FCA) of Rs1.20 per kWh for June 2026, compared to Rs0.6541 per kWh in June 2025. The National Electric Power Regulatory Authority (Nepra) is scheduled to conduct a public hearing on July 29, 2026.

Copyright Business Recorder, 2026

According to an official determination issued on July 17, 2026, the Authority accorded concurrence under Section 14(B)(5) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, for the proposed wind and solar hybrid facility.

The project, with an installed capacity of 269MW, will be developed at Goth Dhori Jokhio near Dhabeji and is part of K-Electric’s broader Power Acquisition Programme (PAP) aimed at diversifying its generation mix and increasing reliance on renewable energy.

Background documents reveal that K-Electric had included a site-neutral hybrid project in its PAP, which was approved by the Nepra in May 2024. Following a competitive bidding process, a consortium led by JCM Power Canada emerged as the lowest bidder and subsequently incorporated AEREPL as a Special Purpose Vehicle (SPV) to execute the project.

The hybrid project integrates wind and solar technologies, leveraging the strong wind corridor in the Gharo–Jhimpir region alongside solar irradiation to ensure optimal energy generation. Officials say this combination will enhance system reliability and reduce dependence on imported fuels.

K-Electric, in its comments to the regulator, highlighted that the project achieved a record-low tariff of Rs8.9189 per kWh (3.0899 US cents) and is expected to generate significant savings—estimated at Rs176 billion over the project’s life—by displacing expensive thermal generation. The utility also projected foreign exchange savings of nearly USD 986 million.

The Energy Department of the Government of Sindh strongly supported the initiative, noting the province’s vast untapped renewable energy potential. It emphasised that such projects not only contribute to energy security but also reduce exposure to volatile global fuel prices, while offering environmental and socio-economic benefits, including job creation and local development.

The project comprises approximately 175MW of wind power and 94MW of solar photovoltaic capacity, and is estimated to cost around USD 251 million. Financing is expected to be arranged through a mix of 80 percent debt and 20 percent equity, with local and international banks being approached for funding.

Nepra noted that the approval of concurrence will enable the project sponsors to move towards financial close and commence construction, subject to compliance with regulatory requirements, including the grid code and environmental standards.

The authority also observed that the project aligns with national renewable energy policies and will contribute to reducing greenhouse gas emissions, improving energy affordability, and enhancing the resilience of the power system.

With this approval, Pakistan takes another step toward its renewable energy targets, as policymakers increasingly push for indigenous, fuel-free generation to address the challenges of circular debt, high tariffs, and energy security.

In another decision, the Authority has approved a generation tariff of Rs8.9189/kWh for the project.

Copyright Business Recorder, 2026

The price of HSD jumped by Rs 31.05 per litre, rising from Rs 323.30 to Rs 354.35. Whereas, petrol prices increased by Rs 5.44 per litre, bringing the new rate to Rs 316.15 per litre.

Federal Minister for Petroleum Ali Pervaiz Malik said on Friday that the government has taken another step towards deregulation; OGRA will announce petroleum prices daily, based on Platts’ 7-day moving average data.

READ MORE: Petrol price surges by Rs13.18, HSD’s by Rs13.80

OGRA will publish all international benchmarks & detailed calculation sheets on its website. Government to fix fuel prices daily due to renewed hostilities in Persian Gulf, the minister said.

The decision has faced immediate backlash from key industry stakeholders. The All Pakistan Petroleum Dealers Association rejected the deregulation policy, warning it could disrupt fuel transportation, oil tanker operations, and the current pricing system. They urged the government to consult stakeholders before finalizing the move.

Oil Marketing Companies (OMCs) expressed serious concerns, stating that the retail sector is not ready for such a major shift. They warned that daily price changes would complicate stock valuation, inventory management, and cash flow. Additionally, they cautioned that the move could hurt dealers’ margins, trigger market uncertainty, and confuse consumers.

Copyright Business Recorder, 2026

According to a statement, the raid was carried out by SSGC’s Counter Gas Theft Operations (CGTO) team in coordination with the Customer Relations Department (CRD) Theft Section, Distribution Department, SSGC Police and local police at Kacha Road, opposite Masjid Ali Murtaza near Nipa Flyover in Block-11, Benazirabad.

The company said the operation uncovered a large-scale gas theft network in which suspects had illegally tapped into a two-inch high-pressure SSGC gas pipeline by installing a direct connection through a one-inch Muller-T plastic pipe. The illegal connection was supplying stolen natural gas to approximately 400 households.

SSGC said around 20 feet of the two-inch pipe used in the theft was recovered as evidence, while the unauthorized connection was disconnected on the spot.

According to preliminary investigations, the suspects were charging each household an advance payment of Rs20,000 for providing the illegal gas connection, in addition to a monthly fee of Rs2,500 for the continued unauthorized supply of natural gas.

Copyright Business Recorder, 2026

The government is finalising a strategy to purchase at least one LNG cargo from the spot market for delivery in July, and as many as six shipments for August, Bloomberg reported, citing people familiar with the matter.

The development comes as tensions escalate between Iran and the United States, which have stepped up attacks across the Gulf, limiting oil ​flows out of the Strait of Hormuz. Tehran is asking the Houthis to stand ready to shut the Red Sea export route.

Meanwhile, rising temperatures in Pakistan have raised power demand, even as solar output to the grid fell, forcing the government to increase reliance on LNG-fired generation, Muhammad Awais Ashraf, research director at AKD Securities, told Bloomberg.

The report said Pakistan’s bid to secure more LNG may indicate that Islamabad expects the conflict to drag on.

Pakistan has struggled in recent years to secure LNG cargoes amid volatile global prices and supply disruptions, challenges that have intensified during the US-Iran conflict.

By early July 2026, Pakistan purchased an LNG shipment for July 10-11 delivery from TotalEnergies SE for $17.37/mmbtu, its second spot purchase in two weeks, to replace Qatari supplies disrupted by renewed hostilities in the Strait of Hormuz. Pakistan LNG Limited (PLL) subsequently issued a tender for an urgent LNG cargo for July 15-16 delivery following the cancellation of a Qatari shipment.

Brent crude futures rose by $1.77, or 2.1%, to $86 a barrel by 1158 GMT. U.S. West Texas Intermediate futures were up $1.91, or 2.4%, at $80.86.

Both benchmarks have climbed about 13% this week, with Brent on track for a third consecutive weekly gain and WTI set for its second.

Diesel refining margins hit record highs on Friday, with low-sulphur gasoil futures touching $66.25 over Brent crude.

The Middle East is a major diesel exporter and the Hormuz closure, as well as attacks on oil refineries, have tightened fuel markets and bolstered prices globally.

The broken truce between the U.S. and Iran has resulted in a drop in oil flows out of the strait. Iran, meanwhile, has pressed the Houthi movement to close the Red Sea route if the U.S. strikes Iran’s power infrastructure.

Transit through the Red Sea has increased significantly since the start of the Iran war because of rerouted Saudi oil exports away from Hormuz, Commerzbank analysts wrote.

“Should a blockade of the Strait of Bab al-Mandab occur in the wake of further escalation, the price of oil in particular is likely to rise further,” they wrote.

Iran said it launched fresh strikes on U.S. facilities in the Middle East on Friday, including the first direct attack in Syria, after a sixth straight night of U.S. strikes on Iranian military facilities.

U.S. Central Command said on Thursday that American forces had begun a new wave of strikes against Iran to further degrade Iranian military capabilities.

“Oil security is still a critical issue,” International Energy Agency Executive Director Fatih Birol said on Thursday at a Council on Foreign Relations event in Washington.

“We should be worried, and I am worried, if the situation does not improve in the next few weeks,” he said.

Meanwhile, Qatar’s defence ministry said its armed forces thwarted an Iranian missile attack early on Friday and the interior ministry said a child was injured by shrapnel resulting from interception operations.

One of Kuwait’s power generation and water desalination stations was hit by an Iranian attack, Kuwait’s electricity ministry said on Friday.

Front-month gas futures for August delivery on the New York Mercantile Exchange fell 3.6 cents, or 1.2 percent, to USD2.888 per million British thermal units (mmBtu), putting the contract on track for its lowest close since May 13.

The US Energy Information Administration said energy firms added 41 billion cubic feet (bcf) of gas to storage during the week ended July 10.

That was close to the 43-bcf build analysts forecast in a Reuters poll and compares with an increase of 47 bcf during the same week last year and a five-year (2021-2025) average increase of 45 bcf for the period.

Looking ahead, futures for calendar 2027 fell to USD3.34 per mmBtu, their lowest since February 2022.

Financial group LSEG said average gas output in the US Lower 48 states rose to 110.3 billion cubic feet per day (bcfd) so far in July from 110.0 bcfd in June, but remained below the monthly record high of 110.6 bcfd in December 2025.

Analysts said mostly mild weather during the spring allowed energy firms to stockpile more gas than usual. As they wait for a federal report on Thursday, they projected the amount of gas in storage eased to 6.4 percent above normal during the week ended July 10, down from 6.6 percent during the previous week.

Meteorologists forecast the weather would remain mostly warmer than normal through July 31, forcing power generators to burn lots of gas to keep air conditioners humming. About 40 percent of US power generation comes from gas-fired plants.

Central Power Purchasing Agency Guarantee Limited has submitted power generation data with the National Electric Power Regulatory Authority (Nepra).

The main reason of higher FCA for June 2026 was less generation from hydel sources, forced outages of few thermal plants, use of expensive Furnace Oil and RLNG.

Nepra will conduct a public hearing before finalising the impact of FCA on consumers of Discos and K-Electric.

Copyright Business Recorder, 2026

Brent crude futures fell 72 cents, or about 0.9 percent, to settle at USD 84.23 a barrel. US West Texas Intermediate futures fell 65 cents, or 0.8 percent, to close at USD 78.95 a barrel.

At their session highs, both contracts were up more than 1 percent. Thursday’s decline reflects the market losing some steam after prices hit one-month highs earlier this week as traders readjusted their positions, said Ed Hayden-Briffett, oil research analyst for The Officials. “Investor positioning in the oil market was very short when the situation started to worsen in the Middle East this week, and that seems to have slowed as investors that got burnt in the rally cut their short positions earlier in the week,” Hayden-Briffett said.

READ MORE: Oil rises over 1% as Iran threat puts Red Sea route at risk

On Wednesday, Brent futures settled at their highest since June 12, and WTI at the highest since June 15.

The fragile truce reached in June has collapsed, disrupting energy flows through the Strait of Hormuz, which handled about a fifth of daily global oil and LNG trade before the war began. Iran has asked Yemen’s Houthis to be ready to close the Red Sea oil route if the US strikes Iranian power infrastructure, three sources told Reuters. This week, US President Donald Trump repeated oft-stated threats to strike Iranian power plants and bridges.

“With the Strait of Hormuz already closed, this threat raises the serious risk of both of the Middle East’s primary oil export routes being disrupted at the same time,” said Alex Hodes, director of energy market strategy at brokerage StoneX.

About 7.4 million barrels of petroleum transited Bab el-Mandeb per day in June, about 7 percent of global oil output, according to Kpler data, up from 4.2 million bpd last year.

“Simultaneous disruptions affecting Hormuz and Bab el-Mandeb would significantly amplify supply chain stress, increase tanker availability constraints, and raise insurance premiums,” said Wael Makarem, financial markets strategist lead at Exness. On Wednesday, the US struck Iran’s coastal defenses and missile sites after reimposing a naval blockade of its ports.

Tehran threatened to shut off more regional energy exports, saying it was engaged in an “existential war” with America. Iran and the US exchanged intensified fire on Thursday, which kept upward pressure on prices.

Weighing on prices was Iran’s release of a US citizen, which could point toward a path to avert the resumption of all-out war.

On the supply side, Iraqi crude loadings more than doubled to average roughly 1.2 million barrels per day in the first half of July, according to Kpler data and a source with direct knowledge of the flows, as exports accelerated following months of restricted shipments.

Petrol sales rose 22.9% year-on-year to 1.64 million tonnes during July 1-15, compared with 1.33 million tonnes in the same period last year.

Diesel sales, which account for the largest share of fuel consumption in India, increased 20.9% y/y to 3.47 million tonnes.

India lifts restrictions on sale of petrol, diesel from July 1

Jet fuel sales were broadly steady, rising 0.7% y/y to 315,400 tonnes.

Liquefied petroleum gas sales fell 17.5% y/y to 1.15 million tonnes, the data showed.

Speaking in a seminar held at the Securities and Exchange Commission (SECP), Habib said the government’s economic direction was encouraging and macroeconomic indicators had improved, but structural challenges, particularly expensive electricity and taxation, remained major obstacles to sustainable economic growth.

“Presently, Pakistan is facing several problems in attracting new investment into the economy, both from international and local investors. That is mainly because the cost of production is high,” he said, adding that electricity prices in the country are significantly higher than those in competing regional economies.

PIACL control handed to Arif Habib-led consortium

During his speech, Habib noted that high energy prices have eroded the competitiveness of Pakistani manufacturers, making it difficult for exporters to compete in international markets.

“That’s why I think our exports are not growing.”

Habib also highlighted the tax burden on businesses, saying that 29% corporate income tax, 10% super tax and other levies combine “which goes up to 50-60%” is substantially higher than in many competing regional economies.

“If energy costs and taxes are reduced, I believe we will see some positive developments in the Pakistan economy in terms of investment,” he said.

He acknowledged that the government’s fiscal position had strengthened in recent years, helped by lower interest rates and a lower budget deficit.

Pakistan govt may approach IMF to reduce rate of taxes on businesses, Arif Habib says

Habib said Pakistan already possesses significant industrial capacity, which remains idle amid weak demand. He added that stronger economic activity would enable existing industries to increase output, without the need for further investment.

“I believe we will see further improvements in Pakistan’s overall economic environment going forward.”

Brent crude futures were up 93 cents, or 1.09%, to $85.88 a barrel at 1420 GMT, while U.S. West Texas Intermediate futures were up 89 cents, or 1.12%, to $80.49 a barrel.

“Simultaneous disruptions affecting Hormuz and Bab el-Mandeb would significantly amplify supply chain stress, increase tanker availability constraints, and raise insurance premiums,” said Wael Makarem, financial markets strategist lead at Exness.

Iran has asked Yemen’s Houthi movement to stand ready to close the Red Sea oil route if the United States strikes Iranian power infrastructure, three sources told Reuters on Thursday, posing a potent new threat to global energy supplies.

Closure of the Bab el-Mandeb strait — gateway to the Red Sea — would open a new front in the energy crisis and Iran’s overarching conflict with the U.S.

Total volumes of petroleum transiting Bab el-Mandeb amounted to 7.4 million barrels per day in June, or about 7% of global oil output, according to Kpler data, up from 4.2 million bpd last year.

The U.S. struck Iran’s coastal defences and missile sites on Wednesday after reimposing a naval blockade of its ports, while Tehran threatened to shut off more regional energy exports, saying it was engaged in an “existential war” with America.

The escalation comes after a fragile truce reached in June collapsed, reviving fears of a return to full-scale conflict and disrupting energy flows through the Strait of Hormuz, which handled about a fifth of daily global oil and LNG trade before the war began.

Fewer vessels passed through the strait on Wednesday, the first day after the U.S. reimposed its naval blockade on Iran. Seven crossed on Wednesday, down from 13 the previous day.

“It seems reasonable that prices could continue to climb towards $90-$95 and maybe even touch the $100 mark again and that is because the Strait of Hormuz is repeatedly being disrupted, creating uncertainty over oil flows from the Gulf,” said Ole Hvalbye, market analyst at SEB Research.

On the supply side, Iraqi crude loadings more than doubled to average roughly 1.2 million barrels per day in the first half of July, according to Kpler data and a source with direct knowledge of the flows, as exports accelerated following months of restricted shipments.

Brent futures settled at USD 84.95 a barrel, up 22 cents, or 0.26 percent. West Texas Intermediate futures finished at USD 79.60 a barrel, up 26 cents, or 0.33 percent.

The US Energy Information Administration reported a 1.7-million-barrel drop in US crude inventory last week, less than a forecast draw of 2.6 million barrels.

“There seems to be a sense that we’ve seen this movie before,” said Phil Flynn, senior analyst with Price Futures Group, referring to hostilities in the Middle East.

“There’s a sense in that EIA report the supplies instead of evaporating are stabilizing,” he added.

The EIA also reported a build in distillates of 4.6 million barrels last week compared to a forecast increase of 100,000 barrels.

Washington had earlier reimposed a naval blockade of Iranian ports and launched overnight strikes, prompting Iran’s Islamic Revolutionary Guard Corps to threaten to close “all other export corridors that benefit the US and its allies”.

Oil prices settled up 2 percent at a one-month high on Tuesday as attacks exacerbated a supply disruption in the Strait of Hormuz, through which about a fifth of the world’s oil and liquefied natural gas passed prior to the war’s outbreak.

The hostilities between Iran and the US reignited last week, fraying an already fragile truce reached in June after several months of fighting.

Late on Tuesday, the US military said it had hit dozens of military targets near the strategic waterway and Iranian coastal areas in strikes lasting seven hours. In response, Iran’s Islamic Revolutionary Guard Corps said on Wednesday it had struck US military targets in the region, including in Bahrain, Kuwait and Jordan.

The US military said its fresh strikes on Wednesday against Iran’s coastal defence systems and cruise missile storage and launch sites were “designed to further degrade military capabilities Iranian forces have used to attack commercial shipping in the Strait of Hormuz.”

Analysts have said Iran has been signalling it may use its Houthi allies in Yemen to shut the Bab el-Mandeb gateway to the Red Sea, opening a new front against Washington and putting two of the world’s most vital energy arteries at risk.

Further strengthening oil prices was a US naval blockade of ships coming and going to Iranian ports, said UBS analyst Giovanni Staunovo, adding that Iranian crude exports were around 1.5 million to 2 million barrels per day in the last two weeks.

Goldman Sachs estimated in a note that Gulf exports recovered to more than 80 percent of pre-war levels after the US-Iran memorandum of understanding in June but slipped back below 50 percent, or about 11 million bpd, over the last week. The bank said Brent could exceed USD 110 in the fourth quarter this year if the Gulf export recovery continues to stall.

Still, investors are cautious to apply too much of a premium on oil prices, given the back-and-forth headlines.

“This is just all part of the war games,” said Saxo Bank head of commodity strategy Ole Hansen. “And the market has learned to adopt a little bit of a sanguine approach to some of these big announcements, simply in the sense that they often do not actually materialize.”

Front-month gas futures for August delivery on the New York Mercantile Exchange fell 3.5 cents, or 1.2 percent, to USD2.869 per million British thermal units (mmBtu), putting the contract on track for its lowest close since May 13. Meteorologists forecast temperatures would top 90 degrees Fahrenheit (32.2 degrees Celsius) in many parts of the country on Wednesday, including New York and Chicago. That forecast compares with a normal high of 85 F in both cities for this time of year, according to weather forecaster AccuWeather.

As homes and businesses crank up their air conditioners to escape the heat, next-day power prices at the PJM Western Hub jumped 178 percent to around USD420 per megawatt hour. The PJM Western Hub is located mostly in western Pennsylvania and the District of Columbia/Maryland metro area.

Financial group LSEG said average gas output in the US Lower 48 states has risen to 110.1 billion cubic feet per day so far in July, up from 110.0 bcfd in June, but has remained below the monthly record high of 110.6 bcfd in December 2025.

Analysts said mostly mild weather during the spring allowed energy firms to stockpile more gas than usual. As they wait for a federal report on Thursday, they projected the amount of gas in storage was 6.6 percent above normal during the week ended July 10, the same as the previous week.

Meteorologists forecast the weather would remain mostly warmer than normal through July 30, forcing power generators to burn lots of gas to keep air conditioners humming. About 40 percent of US power generation comes from gas-fired plants.

LSEG projected average gas demand in the Lower 48 states, including exports, would slide from 111.1 bcfd this week to 110.4 bcfd next week. The forecast for this week was higher than LSEG’s outlook on Tuesday.

Average gas flows to the nine big US LNG export plants have risen to 17.5 bcfd so far in July, up from 17.4 bcfd in June, but have remained below the monthly record high of 18.8 bcfd in April. On a daily basis, however, LNG feedgas was on track to drop to a five-week low of 16.8 bcfd on Wednesday due mostly to a reduction in flows to Freeport LNG’s 2.4-bcfd export plant in Texas for planned work from July 10 to late August.

In other LNG news, the Al Fat’h LNG tanker was on track to reach China on July 16 with a load of fuel from US energy firm Venture Global LNG’s Plaquemines export plant in Louisiana. The vessel left the US in early June.

So far, no LNG tanker has left a US export plant and gone directly to China during US President Donald Trump’s second term, which started in January 2025, due primarily to trade disputes between the world’s two biggest economies.

China, which imported a large amount of US gas in the past and has many contracts to buy US LNG, is the world’s biggest gas importer, while the US is the world’s biggest gas producer, consumer and exporter. Chinese companies have bought US LNG and then sold it to buyers in other countries.

Washington had earlier reimposed a naval blockade of Iranian ports and launched overnight strikes, prompting Iran’s Islamic Revolutionary Guard Corps to threaten to close “all other export corridors that benefit the U.S. and its allies”.

Brent futures gained 18 cents, or 0.2%, to $84.91 a barrel at 1214 GMT. West Texas Intermediate futures rose 26 cents, or 0.3%, to $79.60 a barrel.

Oil prices settled up 2% at a one-month high on Tuesday as attacks exacerbated a supply disruption in the Strait of Hormuz, through which about a fifth of the world’s oil and liquefied natural gas passed prior to the war’s outbreak.

The hostilities between Iran and the U.S. reignited last week, fraying an already fragile truce reached in June after several months of fighting.

Late on Tuesday, the U.S. military said it had hit dozens of military targets near the strategic waterway and Iranian coastal areas in strikes lasting seven hours.

In response, Iran’s Islamic Revolutionary Guard Corps said on Wednesday it had struck U.S. military targets in the region, including in Bahrain, Kuwait and Jordan.

The U.S. military said its fresh strikes on Wednesday against Iran’s coastal defence systems and cruise missile storage and launch sites were “designed to further degrade military capabilities Iranian forces have used to attack commercial shipping in the Strait of Hormuz.”

Analysts have said Iran has been signalling it may use its Houthi allies in Yemen to shut the Bab el-Mandeb gateway to the Red Sea, opening a new front against Washington and putting two of the world’s most vital energy arteries at risk.

Further strengthening oil prices was a U.S. naval blockade of ships coming and going to Iranian ports, said UBS analyst Giovanni Staunovo, adding that Iranian crude exports were around 1.5 million to 2 million barrels per day in the last two weeks.

Goldman Sachs estimated in a note that Gulf exports recovered to more than 80% of pre-war levels after the U.S.-Iran memorandum of understanding in June but slipped back below 50%, or about 11 million bpd, over the last week.

The bank said Brent could exceed $110 in the fourth quarter this year if the Gulf export recovery continues to stall.

Still, investors are cautious to apply too much of a premium on oil prices, given the back-and-forth headlines.

“This is just all part of the war games,” said Saxo Bank head of commodity strategy Ole Hansen. “And the market has learned to adopt a little bit of a sanguine approach to some of these big announcements, simply in the sense that they often do not actually materialize.”

Front-month gas futures for August delivery on the New York Mercantile Exchange fell 2.7 cents, or 0.9percent, to USD2.87 per million British thermal units (mmBtu), putting the contract on track for its lowest close since May 13.

That also put the front-month down for five days in a row and kept it in technically oversold territory for a second day in a row, both for the first time since April.

In a sign the market is not too worried about gas supplies in coming months, the premium of futures for March over April 2027 fell to a record low of around 18 cents per mmBtu.

The industry calls the March-April spread the “widow-maker” because rapid price moves resulting from changing weather forecasts have forced some speculators out of business. Notably, the Amaranth hedge fund lost more than USD6 billion in 2006.

Traders use the March-April and October-November spreads to bet on winter weather forecasts and supply and demand. March is the last month of the winter heating season when utilities pull gas out of storage, and October is the last month of the summer cooling season when utilities inject gas into storage.

Financial group LSEG said average gas output in the US Lower 48 states rose to 110.2 billion cubic feet per day (bcfd) so far in July, up from 110.0 bcfd in June, but remained below the monthly record high of 110.6 bcfd in December 2025.

Analysts said mostly mild weather during the spring allowed energy firms to stockpile more gas than usual. As they wait for a federal report on Thursday, they projected the amount of gas in storage held at 6.6percent above normal during the week ended July 10, the same as the previous week.

Meteorologists forecast the weather would remain mostly warmer than normal through July 29, forcing power generators to burn lots of gas to keep air conditioners humming. About 40percent of US power generation comes from gas-fired plants.

LSEG projected average gas demand in the Lower 48 states, including exports, would hold around 110.4 bcfd this week and next. Those forecasts were higher than LSEG’s outlook on Tuesday.

Average gas flows to the nine big US LNG export plants rose to 17.6 bcfd so far in July, up from 17.4 bcfd in June, but remain below the monthly record high of 18.8 bcfd in April.

That increase in average LNG feedgas came despite the reduction in flows to Freeport LNG’s 2.4-bcfd export plant in Texas for planned work from July 10 to late August.

China imported 29.27 million tons of crude oil in June, or 7.12 million barrels per day, the lowest since October 2016, customs data showed on Tuesday. The slump extended into June from May, with imports falling by another 12percent, after oil imports hit an eight-year low in May. China’s seaborne crude imports stood at around 6 million bpd in June, with imports from the Middle East hitting their lowest level in ten years and Iranian oil imports also dropping 40percent month on month to below 800 thousand barrels per day, according to ship-tracking company Vortexa.

In June, the utilisation rate of China’s crude distillation units stood at 57.72percent, down 3.28 percentage points month on month and down 13.09 percentage points year on year, according to Chinese consultancy Oilchem.

The lower OSP reflects a sharp decline in benchmark oil prices after an interim US-Iran peace deal eased concerns about disruption of supply through the Strait of Hormuz.

Oil has since rebounded as renewed US-Iran attacks revived concerns over disruption.

ADNOC said it would offer customers an alternative delivery option for offshore crude grades on a free-on-board, or cargo loaded at port, and ship-to-ship basis at Fujairah.

Under the scheme, cargoes will be priced against the August Dubai benchmark, with a premium of $1 a barrel for Umm Lulu crude and $0.80 a barrel for Das and Upper Zakum crude.

The change applies to customers with long-term contracts.

ADNOC has sold more than 70 million barrels of spot Upper Zakum, Das and Umm Lulu, mostly on a ship-to-ship basis from Fujairah in tenders between June and August.

The actual sales volume is likely to be higher because of additional sales outside tenders.

Those three grades are produced in Gulf fields and exported through the Strait of Hormuz on ADNOC’s shuttle fleet.

 The UAE raised its crude output to near record highs above 3.8 million barrels per day in June after it quit OPEC to escape production caps.

China’s January-to-June crude oil imports fell 11.4% to 247.61 million metric tons, the data showed.

China’s June natural gas imports stood at 10.93 million metric tons, up 3.7% from a year earlier.

In the first six months of the year, China’s natural gas imports fell 3.4% from a year earlier to 57.45 million metric tons.

Before the Iran war about 20% of global oil supplies flowed through the strait.

Keeping price gains in check, however, were concerns that those higher energy prices could boost inflation around the world and ultimately reduce economic growth and demand for oil.

Brent futures rose $1.47, or 1.8%, to $84.77 per barrel at 11:36 a.m. EDT (1536 GMT), while U.S. West Texas Intermediate (WTI) crude rose $1.26, or 1.6%, to $79.40.

That put Brent on track for its highest close since June 12 and WTI on track for its highest close since June 15. It also kept Brent in technically overbought territory for a second day in a row for the first time since March.

“The resumption of attacks between the U.S. and Iran is accelerating this week and will likely continue given the additional U.S. bombing overnight that followed reinstatement of a U.S. blockade of the Strait of Hormuz,” analysts at energy advisory firm Ritterbusch and Associates said in a note.

Iran fired missiles at Jordan and Bahrain on Tuesday after the U.S. launched a five-hour attack on Iranian targets, stepping up a battle for control of the Strait of Hormuz.

U.S. forces carried out waves of attacks for the third night in a row after Tehran said it had closed the strait, prompting U.S. President Donald Trump to reinstate a blockade of Iranian shipping.

Trump on Tuesday dropped the idea of charging a 20% fee on all cargo shipped through the Strait of Hormuz, and said he would instead take trade and investment deals with the Gulf states.

Trump also said the Strait of Hormuz was open to all ship traffic except for Iran, causing U.S. crude futures to turn negative briefly. Crude prices, however, climbed higher again after Oman said 18 members of an oil tanker hit near Oman were evacuated.

The worsening attacks have increased doubts that a memorandum of understanding signed last month will lead to a permanent halt in the war, which has disrupted global energy supplies and raised fears of a rise in inflation across the world.

In early July, when it looked like the ceasefire between the U.S. and Iran would hold, futures for Brent and WTI were trading near levels seen before the U.S. and Israel started bombing Iran on February 28.

Inflation and diesel worries

U.S. consumer inflation slowed more than expected in June, data showed on Tuesday, but that will probably not rule out an interest rate increase from the Federal Reserve this year, with the conflict in the Middle East still unresolved.

Higher interest rates raise the cost of borrowing for consumers, which can slow economic growth and demand for oil.

In Germany, the two-year government bond yield hit its highest since July 2024 on Tuesday as the Iran conflict stoked fears that higher energy prices could boost inflation and interest rates.

Meanwhile, Ukraine’s military said on Tuesday that it struck two Russian oil refineries in the Bashkortostan and Krasnodar regions overnight. Recent Ukrainian attacks on Russia’s energy infrastructure have caused Moscow to curtail diesel exports, boosting diesel prices around the world.

In the U.S., the rise in diesel futures has boosted the 3-2-1 and diesel crack spreads, which measure refining profit margins, to record highs, according to LSEG data.

U.S. oil inventories

The oil market waited for weekly storage reports from the American Petroleum Institute (API) trade group later on Tuesday and the U.S. Energy Information Administration (EIA) on Wednesday.

Analysts estimated energy firms pulled 2.7 million barrels of crude from storage during the week ended July 10.

If correct, that would be the 13th time energy firms pulled crude out of storage in 14 weeks. It compares with a decrease of 3.9 million barrels in the same week last year and an average decline of 1.5 million barrels over the past five years (2021 to 2025).

Brent crude futures settled up $7.29, or 9.59%, to $83.30, while US West Texas Intermediate crude settled up $6.73, or 9.42%, to $78.14 a barrel.

Brent futures posted their biggest single-day dollar gain since April 2, and highest settlement since June 12. US crude futures, meanwhile, made their largest daily gain since April 29 to settle at their highest since June 15.

The US is set to reinstate the naval blockade on July 14 at 2000 GMT, according to the US Navy-led Joint Maritime Information Center. The blockade had been lifted in mid-June.

READ MORE: Oil prices settle lower

Earlier in the day, President Donald Trump said the United States was reinstating a naval blockade and would be reimbursed 20% on all cargo shipped through the Strait of Hormuz, following renewed military exchanges with Iran.“President Trump’s reinstatement of restrictions on Iranian maritime traffic, alongside retaliatory attacks and sharply reduced vessel flows through the strait has intensified concerns over near-term supply availability,” said Gelber & Associates analysts in a note.

Iran’s top joint military command had earlier said it would not allow Washington to intervene in the management of the strait and any attempt by the US to transit without its authorization would be confronted.

The UN’s shipping agency pushed back against Trump’s proposal, saying it opposes any fees for straits used in international navigation and stressing that there is no legal basis for introducing mandatory tolls on strait transits.

Before the conflict began in late February, the Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies.

Traffic had begun to increase during a fragile ceasefire agreed in June, but had slowed as tensions rose.

“The focus will remain on the number of inbound tankers as a lower number could impact production, so currently we see a risk premium and a disruption risk supporting prices,” said UBS analyst Giovanni Staunovo.

Bypassing the strait

As the prospect of long-term disruption looms, analysts expect countries to work on ways to permanently bypass the Strait of Hormuz.

Goldman Sachs estimated that expanding pipeline capacity in the Middle East could shield more than 60% of pre-war Gulf oil exports from any future Hormuz disruptions by end-2028.

The bank’s base-case forecast assumes pipeline capacity bypassing Hormuz will rise by 3.8 million bpd by end-2027 and 7.3 million bpd cumulatively by end-2028, taking total effective bypass capacity to more than 14 million bpd by end-2028.

During the interim peace deal, Tehran increased exports, which has led to an increase in Iranian oil supplies held at sea.

Sales have been slow, however, as China’s independent refiners have turned to cheaper crude from Iraq, the UAE and Qatar.

The Abu Dhabi National Oil Company set the August official selling price of its benchmark Murban crude at $80.01 a barrel, it said on Monday, down from $101.48 a barrel the month before.

Disruptions in Russia

Russian energy supplies have also been disrupted as Ukraine seeks to cut off funding for Moscow’s war effort.

Ukraine’s Security Service said it struck an oil depot in Russia’s Stavropol region overnight, as well as three storage tanks at an oil-loading site in the port of Kavkaz in the southern Russian region of Krasnodar.

Meanwhile, the Caspian Pipeline Consortium, which accounts for 80% of Kazakhstan’s oil exports, cut supplies by 7% last month from May as a result of maintenance at the country’s largest oilfield, Tengiz, as well as lower Russian flows, two industry sources said on Monday.

Elsewhere, stocks of crude oil in the US Strategic Petroleum Reserve fell by about 3 million barrels to 316.5 million barrels last week, the lowest level since April 1983, according to data from the Department of Energy.

The drawdowns are a part of a US agreement to release 172 million barrels from the facility.