Crude Oil Prices Edge Higher, Brent Tops $103 on Supply Risk
Oil prices rose on Thursday, driven by uncertainty over the reopening of the Strait of Hormuz and persistent security risks in the region.
International benchmark Brent crude futures for November delivery traded at $103.30 a barrel, up 0.2% from the previous close of $103.08.
US benchmark West Texas Intermediate (WTI) crude futures for November delivery decreased by 0.07% to $92.22 a barrel from $92.15.
Despite diplomatic efforts aimed at ending the war between the US and Iran, uncertainty over the reopening of the Strait of Hormuz and persistent security risks in the region continue to influence oil prices.
Iranian President Masoud Pezeshkian said in his address to the 81st session of the UN General Assembly that Tehran remains open to diplomacy, but is not afraid of war in the face of US threats and pressure.
Iranian Foreign Ministry spokesman Esmaeil Baghaei also said Iran had contacted the US in New York through Qatari mediation and conveyed Tehran’s conditions.
Iran’s top security official Mohsen Rezaei said that following indirect talks between Iranian Foreign Minister Abbas Araghchi and a US delegation, Washington must implement seven conditions put forward by Tehran within three or four days before the Strait of Hormuz can be reopened.
Iran’s next steps would become clear after that, he added.
US Secretary of State Marco Rubio said he would not characterise the New York talks as a “breakthrough,” but stressed that the meeting itself was significant.
He added that reaching an agreement with Iran would require intensive work over time.
US President Donald Trump, meanwhile, said in his address to the UN General Assembly that he was in the process of deciding whether to reach an agreement with Iran or “destroy” the country, adding that he believed a deal could be reached shortly after the Nov. 3 elections.
The developments indicate that despite ongoing contacts between the two sides, no agreement has yet been reached on reopening the Strait of Hormuz or ending the war.
Meanwhile, the UK Maritime Trade Operations, citing security sources, said on Wednesday that a cargo vessel had been struck in the Strait of Hormuz.
On the supply side, markets are also monitoring developments surrounding Saudi Arabia’s East-West oil pipeline.
Reports that oil flows through the pipeline, which allows Saudi crude to be exported via the Red Sea port of Yanbu, have resumed at low levels, easing supply concerns and limiting upward pressure on oil prices. Oil Prices Dip as Saudi Provides Alternative Exports Route
