Trump Issues Ultimatum to Iran; Oil Holds at US$80
Oil prices remained stable during Asian trading sessions following their steepest weekly decline. West Texas Intermediate (WTI) hovered around US$80.02 per barrel, while Brent crude had previously closed 4.7% lower at US$83.77 per barrel.
Markets are awaiting diplomatic developments after U.S. President Donald Trump described the latest offer for talks as a "last chance" for Iran. Trump also called for the full and immediate reopening of the Strait of Hormuz to facilitate the global flow of energy.
However, Iran has denied engaging in direct negotiations with Washington. Tehran has only acknowledged progress in talks with Oman regarding a temporary corridor to allow more vessels to safely traverse the Strait of Hormuz.
This uncertainty has caused significant volatility in oil prices. The Strait of Hormuz previously handled about one-fifth of the world's crude oil and liquefied natural gas supplies, though current vessel traffic remains well below pre-war levels.
Supply disruptions are also evident in Saudi Arabia's oil exports, which fell by approximately 460,000 barrels per day in July to 4.19 million barrels per day. Additional risks stem from attacks on refineries, tankers, and oil infrastructure in Russia and the Black Sea region.
Newsmaker Analysis: Oil prices could remain under pressure as diplomacy advances and shipping flows begin to recover. However, Iran's denials and Trump's ultimatum mean the risk of escalation persists. WTI needs to hold the US$80 level, whereas a breakdown in negotiations could trigger a rapid price surge. (asd)*
Source: Newsmaker.id
