Oil prices are rising due to concerns about shipping in the Strait of Hormuz
On August 7, global oil prices continued to rise amid concerns about a possible resumption of full-scale shipping through the Strait of Hormuz.
As of 03:03 GMT, Brent crude futures rose by 80 cents, or 0.97%, to $83.29 per barrel.
The price of West Texas Intermediate (WTI) crude oil futures rose by 64 cents, or 0.83%, to $77.93 per barrel.
Analysts note that this week’s events indicate that the military standoff between Iran and the U.S. is not yet over.
According to Lin Ye, vice president of commodities at the consulting firm Rystad Energy, the oil market is reacting to a draft plan released by Iran regarding transit conditions through the Strait of Hormuz.
“Oil prices are reacting to the draft plan published by Iran regarding transit conditions through the Strait of Hormuz, which bans U.S. and Israeli vessels and will require other ‘hostile’ countries to pay compensation for passage,” Lin Ye explained.
According to a high-ranking Iranian official, Tehran is proposing to levy a fee of 5–7% of the cargo’s value on ships passing through the strait.
At the same time, Oman is considering setting a fee at approximately 3%, while the United States advocates for a complete elimination of such payments.
Four sources in the oil industry stated that the proposed agreement would be difficult to implement due to U.S. sanctions and insurance restrictions that could affect such payments.
Thus, uncertainty surrounding shipping through one of the world’s key transport arteries continues to affect the oil market, supporting rising prices.
This was reported by Reuters.
As a reminder, global oil prices continued to decline on Thursday, August 6, amid reports of progress in negotiations between Iran and Oman regarding shipping through the Strait of Hormuz. Investors are also anticipating a possible peace agreement between the U.S. and Iran.
As a reminder, oil prices rose by more than 1.5% during Asian trading, reaching their highest level in over six weeks. The market reacted to attacks by Yemeni Houthis on oil tankers in the Red Sea and a new wave of U.S. strikes against Iran.
Over the past few days, Iran has been secretly moving oil tankers through the Strait of Hormuz even before the United States reinstated its naval blockade of Iranian ports.
