Hormuz Deal Remains Elusive, Oil Prices Surge
Oil prices surged on Monday as tensions remained high in the Middle East. The Strait of Hormuz, through which about a fifth of the world's oil and natural gas is shipped, remains closed due to ongoing disputes between Iran and Oman. Despite Iranian claims that a deal to reopen the strait was 'very close', it appears no agreement has been reached.
European diesel prices skyrocketed following an attack on Saudi Arabia's Jazan refinery, which has added to supply concerns in the region. The refinery strike is the latest disruption to shipments through Hormuz, which have been further compounded by Russia's fuel export ban.
'A deal to re-open the strait does not appear to be imminent,' said Hamad Hussain, a climate and commodities economist at Capital Economics. 'Brent crude prices will probably remain volatile within the $80 to $90 per barrel range in the near term unless there are signs of a clear change in the status quo.'