Hormuz Crisis Spills into Saudi Export Routes

Oil prices stabilized ahead of the Federal Reserve's decision on interest rates, but analysts at Standard Chartered expect them to remain elevated due to ongoing tensions in the Middle East.

The Fed raised interest rates by 25 basis points to a range of 3.75% to 4.00%, its first rate hike since 2023, as policymakers responded to renewed inflationary pressure.

However, commodity analysts at Standard Chartered predict that the continued US-Iran stalemate and associated physical risks to regional exports will keep oil prices supported above a higher floor.

The planned diplomatic meeting between Iran and Gulf Arab states regarding commercial shipping through the Strait of Hormuz was postponed on Tuesday amid a lack of Arab consensus, dashing hopes for a near-term de-escalation.