Market Highlight 23.07.2026

Oil prices rose sharply after reports that Houthi forces attacked two Saudi oil tankers in the Red Sea, escalating the conflict in the Middle East and threatening to cause more severe supply disruptions. Specifically, WTI crude rose by nearly 2% to an intraday high of 88 USD/barrel, while Brent crude also climbed above 95 USD/barrel. The latest developments marked the first attacks targeting oil tankers in the Red Sea, opening a new flashpoint in the Middle East conflict, after traffic through the Strait of Hormuz had already been disrupted since February. In recent days, attacks on vessels along the narrow waterway that is critical to crude oil exports from the Gulf have continued to occur. If shipping routes through the Red Sea are disrupted, oil shortages in the market will become even more acute. Brent crude has risen by nearly 30% this month, and some forecasts suggest that prices could return to triple-digit levels by the end of this year if the conflict in the Middle East continues. Earlier this week, both the U.S and Iran played down the prospects for peace negotiations after attacks extended into a 12th consecutive day.

The USD edged lower from a one-week high on Wednesday after four consecutive days of gains, as the market weighed the possibility of currency intervention by the Japanese Government and signals that the Bank of Japan may raise interest rates more quickly. Expectations for a Federal Reserve rate hike at the July meeting are rising alongside oil prices, with the current probability now above 30%, up from only 10% last week. Domestically, interbank USD/VND at one point rose to 26.340 yesterday, its highest level in one month. However, selling pressure increased in the afternoon, bringing the exchange rate to close the day at 26.320.

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