As of Friday 25 July 2026, Brent futures are holding above $100 a barrel — settling above that level for the first time since May — and are on track for a weekly gain of 14.6 percent, their strongest weekly performance in months. U.S. WTI crude is similarly elevated, trading near $91.63 and heading for an 11.8 percent weekly rise. The immediate catalyst was a sharp slowdown in shipping through the Strait of Hormuz: ship-tracking firm Kpler recorded just one tanker transiting the waterway on Thursday, the lowest count since 7 May.
The rally is being driven by a combination of factors. Iran-backed Houthi rebels claimed attacks on two Saudi oil tankers in the Red Sea, and the movement has announced a naval blockade of Saudi Arabia. The Bab el-Mandeb Strait — the second-most critical oil shipping corridor globally, linking the Red Sea to the Indian Ocean — is also under scrutiny. Separately, Kazakhstan's main Black Sea export terminal suspended loadings following suspected drone attacks, temporarily removing a route that carries roughly 2 percent of global daily oil supply.
What this means for our clients
For founders who are in the process of relocating to the UAE or structuring operations through a UAE entity, sustained oil prices above $100 typically support robust government revenues across the Gulf, which in practice tends to underpin infrastructure spending, free zone development, and overall business confidence in the region. That said, elevated energy prices can also feed through to operational costs — logistics, utilities, and imported goods — so treasury planning deserves attention.
Geopolitical volatility of this kind can also affect banking timelines and correspondent relationships, particularly for businesses with supply chains that touch affected shipping corridors. We monitor these conditions closely for our clients at every stage of company formation and banking setup. If you want to understand how the current environment might affect your specific structure, we recommend reviewing the full Economy Middle East report at the source link above or booking a consultation with our team.