Brent Crude Oil Prices Rise on Strait of Hormuz Uncertainty

The ongoing uncertainty over the Strait of Hormuz has led to an increase in Brent crude oil prices. The market is uncertain about the outcome of negotiations between Iran and Oman, which could determine control of the key shipping artery.

Brent crude futures settled at $83.55 a barrel, gaining $1.06 or 1.3 percent. West Texas Intermediate futures finished at $78.18 a barrel, up 89 cents or 1.15 percent.

Analysts believe that the market is trying to assess whether an Iran-Oman agreement would allow US-flagged vessels to transit the strait. The proposed deal faces challenges due to US sanctions and restrictive insurance clauses on any payments.

Iran is seeking fees of between 5-7 percent of the price of cargoes from ships using the strait, while Oman is discussing fees of about 3 percent. The US wants no fees at all.

Vandana Hari, founder of oil market analysis provider Vanda Insights, said 'The market is trying to assess if an Iran-Oman agreement would allow a US-flagged vessel to transit the Strait of Hormuz.'