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The energy market moved back into a defensive phase in mid-July as renewed attacks, a targeted maritime blockade, and reduced safe passage near the Hormuz Strait pushed Brent above $85 and raised shipping risks for bitumen cargoes.
The energy market moved back into a defensive phase in mid-July. The United States launched several new waves of attacks against targets in southern Iran, while reports also pointed to wider strikes near Tehran. Iran responded with missile and drone attacks against US-linked facilities in Bahrain, Kuwait, and Jordan. For the market, the main concern is no longer only the scale of the attacks, but the continuation of conflict close to the region’s most important energy export route.
Donald Trump initially announced that the United States would restore its maritime blockade against Iran and impose a fee equal to 20% of cargo value for protection through Hormuz Strait. One day later, he withdrew the fee proposal and instead referred to investment and trade agreements with the Persian Gulf countries. The new blockade mainly targets vessels linked to Iranian ports and cargoes, and no official report has confirmed a complete halt in vessel traffic through Hormuz Strait.
Trump has spoken about the end of the previous ceasefire and the continuation of military pressure, but he has also allowed US negotiators to maintain contact. Iran’s release of an American citizen, followed by Trump’s public thanks, showed that limited communication channels are still active. Oman, Qatar, and Pakistan are trying to bring both sides back to the negotiating table, although no clear timetable has been announced.
Brent crude started the week in the mid-$70s, but the return of the blockade, reduced safe vessel passage, and renewed military attacks pushed the Brent Oil Price to around $85 to $86 on July 16. The increase was driven less by an immediate physical shortage and more by the return of a war-risk premium linked to possible disruption of Iranian exports, delays in Persian Gulf cargoes, and a prolonged Hormuz Strait crisis.
The bitumen market is now facing two pressures at the same time. Higher oil and fuel oil prices are lifting the production base, while Middle East shipping risk is increasing delivered costs through freight, war-risk insurance, demurrage, and limited vessel availability. As a result, the gap between a quoted FOB bitumen price and a cargo that can actually be loaded and delivered is widening again.
On July 15, Singapore HSFO 180 CST rose to around $539 per metric ton, almost $70 higher than the previous days. Singapore Bitumen 60/70 increased more moderately to around $593, while South Korea bitumen reached approximately $515. In China, East China bitumen was assessed at around $530 to $560 CFR, while South China stood at around $590 to $610. Weak demand, rainfall, and limited project budgets continued to restrict stronger market growth.
India showed the clearest market contrast this week. Domestic refiners reduced VG30 and VG40 prices by around $73 to $88 per metric ton for the second half of July. The move reflected the monsoon season, weaker road construction demand, and pressure from domestic inventories rather than the direction of crude oil. However, if Persian Gulf cargo costs and freight rates rise again, the room for further declines in India Bitumen prices may become limited.
European export bitumen prices moved higher compared with the previous week, with the Mediterranean, Baltic, and Rotterdam range rising to around $440 to $470 per metric ton. The increase was supported by higher HSFO prices and tighter supply. Bahrain bitumen remained stable at around $550.
In Iran, the return of the blockade and restrictions from shipping lines have brought uncertainty back to the market. Current Iran Bitumen prices do not yet fully reflect the renewed shipping risk, vessel availability, and actual loading conditions. More than any other market, Iran now requires pricing to be assessed together with cargo availability, vessel access, and the real possibility of loading.
The short-term direction of the energy market is upward, but the global bitumen market remains divided. Singapore and Europe are supported by higher fuel oil prices and tighter supply, while South Korea and China continue to face cautious demand. India has moved sharply lower despite rising crude oil.
If negotiations reduce tensions and regular vessel traffic returns, part of the recent increase in oil and fuel oil could be corrected. But if safe passage through Hormuz Strait remains restricted, delivered bitumen prices may continue to rise even without a major increase in FOB prices.
In this market, responding quickly does not mean giving a price too quickly. A reliable supplier must first confirm that the price, cargo availability, vessel, and loading schedule still match before making a commitment.
During stable periods, buyers compare prices. During a crisis, they choose the supplier who remains available, explains the situation clearly, and does not make promises that cannot be delivered.
For current bitumen prices, cargo availability, and reliable shipping guidance, Contact Us.
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