Crude Oil Prices Hold Steady on July 18 as Iraq Outages Offset Tariff Uncertainty

Oil prices traded in a narrow range on July 18, 2025, as drone attacks on oilfields in Iraqi Kurdistan raised supply worries, while uncertainty over US tariff policy and expectations of increased output capped gains. With the summer demand season underway, markets are cautiously watching geopolitical and policy developments, as per Reuters report.

Brent crude edged down 4 cents to $69.48 a barrel, while US West Texas Intermediate (WTI) slipped 3 cents to $67.51. Both benchmarks had jumped around $1 in the prior session.

Iraq’s Oil Supply Disruption Offers Near-Term Support

Repeated drone attacks on oilfields in northern Iraq’s Kurdistan region over 4 days have removed more than half of the area’s 280,000 bpd output, disrupting between 140,000–150,000 barrels per day, the report added.

Iraq’s federal government announced plans to resume exports via the Turkey pipeline, which had been halted for 2 years a potential offset to the short-term supply shock.

Tariff Policy Uncertainty Clouds Demand Outlook

Oil’s upside was limited due to ongoing uncertainty around US tariff policy, which is unlikely to be resolved until after August 1. Fears that escalating trade tensions may reduce demand are weighing on market sentiment.

Adding to the caution, major producers are expected to roll back output cuts, boosting supply just as the seasonal demand cycle begins to taper.

Read More: Russian Oil Ban May Send Prices Soaring, says Hardeep Singh Puri.

Conclusion

Crude prices stayed largely unchanged on July 18, as short-term supply risks from Iraq clashed with longer-term concerns over trade policy and rising output. As the market waits for clarity on US tariffs and OPEC+ actions, near-term fundamentals remain relatively supportive.

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