Global oil prices held steady on Friday, July 18, 2025, following a week marked by both supply disruptions in Iraq and ongoing economic uncertainty linked to potential U.S. tariffs. According to a report by Yahoo Finance, Brent crude futures settled at $69.48 per barrel, while U.S. West Texas Intermediate (WTI) crude closed at $67.51 per barrel. Both benchmarks have edged down more than 1% over the week, reflecting market hesitance amid competing global trends.
These developments come in the wake of several days of drone attacks targeting oil installations in Kurdistan, northern Iraq. The violence has hampered oil production in the region, slashing output by approximately 350,000–400,000 barrels per day according to local energy officials. With total normal output around 600,000 barrels daily, this represents more than half the area’s regular contribution to global supply. The attacks—attributed by analysts to suspected Iran-backed militia groups, although no organization has claimed responsibility—initially caused oil prices to spike by $1 per barrel in the previous trading session.
The Iraqi federal government responded by announcing plans to resume oil exports to Turkey through the Kurdish pipeline, following a temporary suspension forced by the attacks. This move is significant as it ends a two-year hiatus in Kurdistan’s oil exports via the pipeline, which is critical for both regional and Iraqi national economies. The resumption aims to stabilize regional output and reassure international markets of Iraq’s commitment to meeting global oil demand.
Meanwhile, the oil market continues to weigh the possibility of U.S. tariff changes expected to remain unresolved until at least mid-year. Uncertainty surrounding these potential tariffs—particularly those affecting major energy trade flows—remains a significant risk factor for traders. Additionally, OPEC and other major oil producers have signaled intentions to phase out voluntary output cuts in the coming months, which could further increase global supplies just as the typically high summer travel demand starts to taper off.
Despite these challenges, demand remains robust. In the first half of July, global oil consumption averaged 105.2 million barrels per day, representing a year-over-year increase of 600,000 barrels and aligning closely with industry forecasts. This strength in demand, partly attributed to seasonal travel activity, has offered some support to prices.
Industry analysts told Reuters that oil market fundamentals remain supportive in the near term. Supplies are expected to remain “fairly tight” through the rest of the summer, with increased production and the end of voluntary cuts likely tilting the market toward better supply in the last quarter of 2025.
Overall, the oil market faces a delicate balance: prices reflect the tug-of-war between Iraqi supply disruptions, robust summer demand, and looming uncertainties over trade policy and future production increases. As both Brent and WTI remain down year-to-date, investors and industry leaders are watching closely for any shifts in policy or unexpected developments in key producing regions.