Oil Prices Rise, Brent Nears $84 over Shipping Route Uncertainty
Global oil prices edge higher on Friday as uncertainty over the normalisation of shipping through the Strait of Hormuz fueled supply concerns in the Middle East.
International benchmark Brent crude futures for October traded at $83.57 per barrel, up 5% from the previous close of $79.62. US benchmark West Texas Intermediate (WTI) futures for September traded at $78.05 per barrel, up 0.07% from $77.99 in the previous session.
Despite comments from US officials suggesting a deal to ease tensions in the Middle East could be reached, the lack of concrete progress by the end of the week heightened investor concerns over potential renewed attacks.
US President Donald Trump said negotiations with Iran are progressing well and a deal could be reached soon. “We’ve been bringing down prices, and as soon as this situation ends with Iran, oil is going to go down to the floor, gasoline is going to go down,” he said.
Trump said he is closely involved in the negotiations. When asked about the timing of an agreement, he said talks are “going very well”, and a deal could come soon.
Commenting on reports that negotiations with Iran over the Strait of Hormuz are nearing completion, Trump said he cannot yet say Washington and Tehran have reached a full agreement, but confirmed talks are continuing.
Trump also said the US controls the Strait through blockade measures but warned that Iran could still fire at ships transiting the waterway or lay naval mines that could strike tankers.
Meanwhile, reports that a committee in Iran’s parliament is reviewing legislation to block vessels belonging to the US, Israel and other countries described as “hostile” from transiting Strait of Hormuz also supported oil prices.
Iranian Deputy Foreign Minister Kazem Gharibabadi said an agreement reached with Oman on Strait of Hormuz is approaching its final stage.
Gharibabadi said the agreement does not mean full reopening of the Strait of Hormuz, adding that a new shipping route through the strait would be temporary and could remain in place for two to four months or longer.
He said another decision would be required to move to the second phase after the agreement with Oman is finalised. #Oil Prices Rise, Brent Nears $84 over Shipping Route Uncertainty
