The Middle East has once again pulled back from the brink, following an intense exchange of missiles and drones between Israel and Hezbollah. Both sides traded heavy fire but backed off from launching an all-out war, preventing a worst case scenario that many were worried about. Brent prices started the week at above $80 per barrel as a result of the escalation. Prices also remained supported by macroeconomic drivers, following comments by the Federal Reserve on interest rate cuts, which has helped bolster market sentiment. But China demand concerns remain high, which continue to weigh on prices, and potentially affect the OPEC+ decision to unwind the voluntary production cuts starting in October. Claudio Galimberti, Global Market Analysis Director, and Manash Goswami, Vice President Analytics, discuss this and more in the August edition of our monthly thought leadership series REview.