World oil prices continued to rise following reports of Iranian strikes on “hostile targets” in the Strait of Hormuz and Tehran’s plans to restrict the passage of U.S. vessels through the strategic waterway. Bloomberg reports, UNN writes.
Details
Following the incident reports, the price of U.S. WTI crude surpassed $78 per barrel, while Brent held above $82. According to the semi-official Iranian Fars news agency, the attacks took place on the evening of August 6 after explosions near Qeshm Island.
Iran and Oman finalize agreement on the Strait of Hormuz06.08.26, 11:14
Investors are also responding to Iran’s intention, as part of negotiations with Oman, to ban U.S. and Israeli vessels from passing through the Strait of Hormuz, as well as to introduce compensation fees for countries Tehran considers hostile.
Agreements to reopen the Strait of Hormuz remain out of reach, while investors are walking a tightrope. Traffic remains low for now, and the path toward a long-term agreement remains unclear
Tensions in the Middle East are intensifying
According to Bloomberg, the market has almost completely recovered its losses from the beginning of the week, as prospects for a full restoration of shipping through the Strait of Hormuz remain uncertain.
At the same time, the conflict in the region continues to escalate. Iran-backed Houthi rebels announced a large-scale attack on Yemeni government forces, and earlier reported an attack on a Saudi oil tanker in the Gulf of Aden and threatened shipping in the northern part of the Red Sea.