# Oil Prices Surge Following Drone Attacks on Kurdish Oil Fields

NEW YORK – Crude oil prices witnessed their first upward movement in four trading sessions as drone strikes on oil fields within Iraq's autonomous Kurdistan region entered their fourth consecutive day, disrupting operations and fueling supply concerns.

On July 17, on the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for August delivery experienced a $1.16 increase, equating to a 1.75% jump, to close at $67.54 per barrel. Similarly, Brent crude, the global oil benchmark for September delivery, rose by $1.00, or 1.46%, settling at $69.52. Both benchmarks had been on a downward trajectory since July 11, making this their first rebound in nearly a week.

The continuous drone strikes have caused substantial damage to oil infrastructure in the region, according to the Kurdistan Regional Government's Ministry of Natural Resources. The targeted sites include the Tawke, Peshkhabour, and Ain Sifni oil fields, located in Iraq’s Duhok province. Reports from Iraqi officials indicate that these drone attacks, carrying explosives, have forced the suspension of operations across numerous facilities.

This disruption has led to a sharp decline in oil production, with output in Kurdistan dropping by an estimated 140,000 to 150,000 barrels per day—representing nearly half of the region's daily capacity of 280,000 barrels.

Regional authorities have suggested that the attacks may be intended to jeopardize the safety of civilian workers within the vital energy sector. While Iraqi officials have yet to determine the responsible party, speculation points toward potential involvement by Iran-backed militias in the area.

Commenting on the market's reaction, Andrew Lipow, president of Lipow Oil Associates, remarked, “The rise in oil prices reflects heightened market sensitivity to the drone attacks in Iraq, which underscore the vulnerability of oil supplies to even low-tech threats.”

# Geopolitical Tensions and Tariffs Add to Market Volatility

While the Kurdish drone strikes captured the spotlight, oil traders are also closely examining developments surrounding U.S. trade policy, as the country edges closer to implementing new reciprocal tariffs on August 1.

Ashley Kelty, an analyst at Panmure Gordon, highlighted the ongoing uncertainty, stating, “The ambiguity surrounding the extent of U.S. tariffs and their potential ramifications on global economic growth is fueling short-term volatility in crude oil prices.”

In addition to the geopolitical tension in Iraq, investors remain cautious, anticipating further market fluctuations in response to international trade negotiations and policy announcements in the coming weeks. With supply chain disruptions, geopolitical instability, and tariff policies in play, oil prices are expected to be highly reactive to breaking news and emerging trends.

By zeroing in on vulnerable oil supplies and global trade uncertainties, the energy market is bracing for continued turbulence, emphasizing the interconnectedness of geopolitical events and market dynamics. Expect heightened sensitivity to both regional disruptions and international economic developments in the days ahead.