Oil Rises 3% as Iran Dampens Hopes for Strait of Hormuz Reopening
Oil prices rose approximately 3% during Monday's trading (August 10) after Iran dampened hopes for the imminent reopening of the Strait of Hormuz. Brent crude strengthened by US$2.48, or 3%, to US$86.03 per barrel, while West Texas Intermediate (WTI) rose by US$2.43, or 3.1%, to US$80.61 per barrel.
The rise followed Iran's statement that the United States must lift sanctions, pay compensation, and meet several other conditions before the Strait of Hormuz is reopened. This statement led the market to assess that the normalization process for this key global energy artery remains far from complete.
Previously, Brent and WTI had fallen by more than 7% last week due to optimism that Iran and Oman were nearing a deal to reopen the Strait of Hormuz. However, Iran emphasized that while an agreement with Oman regarding a new shipping route was nearing finalization, a full reopening still depended on Washington's stance.
Supply risks also increased after the Iran-affiliated Houthi group claimed to have attacked a Saudi Aramco refinery in Jazan. Additionally, Ukrainian attacks on Russian energy infrastructure—including the Taneco refinery and the ZapSibNeftekhim petrochemical facility—further heightened concerns regarding global supply.
Regarding market impact, oil prices are likely to remain supported as long as the reopening of the Strait of Hormuz remains uncertain and the risk of attacks on energy facilities stays high. If Iran's demands delay an agreement, Brent and WTI could retain a geopolitical risk premium. This situation could also reignite inflation concerns, dampen stock market optimism, and keep the Federal Reserve's policy direction in focus. (asd)*
Source: Newsmaker.id
