Uncertainty Over Hormuz Keeps Oil Prices Rising
Oil prices strengthened again during Friday's trading (August 7) as the market began to harbor doubts regarding the plan to open the Strait of Hormuz. Brent crude rose 1.2% to around US$83.48 per barrel, while WTI gained 1.1% to reach US$78.84 per barrel.
The upward trend continued after Iran and Oman proposed new regulations for vessels transiting the Strait of Hormuz. Ships owned by the United States, Israel, and nations deemed hostile to Iran could potentially be barred from passage.
The Iranian parliament is also reviewing a draft regulation that would allow for fines of up to 20% of cargo value for non-compliant vessels. Iran has reportedly proposed a transit fee of 5%–7% of cargo value, while Oman has discussed a fee of around 3%.
The United States rejects the imposition of permits, tolls, or fees for passage through the waterway. Industry players also consider the plan difficult to implement, as payments to Iran could violate US sanctions and ship insurance regulations.
Regional security risks are also keeping oil prices elevated. The Houthi group claimed to have launched missile and drone attacks against Saudi-linked positions in Yemen, even though President Donald Trump stated that the war might soon come to an end.
Newsmaker Analysis: The market remains unconvinced that the Iran-Oman agreement can restore normal oil shipments. As long as vessel bans, transit fees, and the threat of attacks remain under discussion, Brent prices are likely to hold above US$80. A clear agreement could exert downward pressure on oil prices, whereas a failure in negotiations risks driving prices back up. (asd)*
Source: Newsmaker.id
