Iran Shakes Up Hormuz; Oil Prices Rebound
Oil prices surged again during Thursday's trading (Aug 6) after Iranian media reported that Tehran had attacked several targets deemed "hostile" in the Strait of Hormuz. Brent crude briefly rose to US$83.49 per barrel, while WTI touched US$78.33 per barrel.
This rise extends earlier gains, as the market began to doubt whether the agreement between Iran and Oman could fully restore oil shipments. Previously, WTI closed up 2.8% at US$77.29, while Brent strengthened 3.8% to US$82.49.
Tensions escalated following reports that Iran plans to ban US- and Israeli-owned vessels from passing through the Strait of Hormuz. Nations deemed to have harmed Iran would also reportedly be required to pay compensation before obtaining transit permission.
The market assesses that such rules could keep oil and gas exports from the Gulf region constrained. European natural gas prices even spiked by as much as 12% due to concerns regarding the safety of gas tankers.
Although Iran states that the agreement with Oman is in its final stages, the full reopening of the Strait of Hormuz remains uncertain. Tehran insists that the United States is not involved in the deal and demands that the blockade of Iranian ports be lifted first.
Newsmaker Analysis: Oil sentiment has turned bullish again due to rising security risks in the Strait of Hormuz. As long as attacks, vessel bans, and uncertainty regarding the agreement persist, Brent is likely to hold above US$80. However, the announcement of an official agreement guaranteeing smooth shipments could trigger a rapid drop in prices. (arl)
Source: Newsmaker.id
