Hormuz Tensions Keep Oil Prices Under Pressure

Oil prices rose on Thursday as investors remained cautious about the outcome of talks between Iran and Oman, which could lead to the resumption of shipments through the Strait of Hormuz.

The proposed agreement would give Tehran control over vessels entering the Persian Gulf through the Strait of Hormuz, a key waterway that handles about one-fifth of the world's daily oil and LNG shipments.

However, geopolitical risks remain high, with Iran warning the Gulf states that any further US attacks on its territory would result in retaliation against critical energy infrastructure.

Saudi Arabia slightly lowered the official selling price of its flagship Arab Light grade for Asia in September, while a major oil refinery in Russia's Yaroslavl region is on fire following a Ukrainian drone strike.

Analysts expect further instability in the region and global markets, with one expert noting that 'until we see sustained, verified increases in volumes, the market will continue to price in some degree of supply risk'.