Iran-Oman Accord Uncertainty Drives Oil Prices Higher

Oil prices are rising as efforts to secure an Iran-Oman agreement on the Strait of Hormuz remain uncertain. The tentative accord would bar 'hostile' vessels from transiting the region and impose fines for violations, but its fate is unclear. Iranian parliamentary committee members are reviewing the draft bill.

The proposed restrictions have been opposed by Washington, which claims control over the critical chokepoint that handled roughly one-fifth of global seaborne crude flows before the conflict. The US Central Command has redirected 49 commercial vessels, disabled two, and boarded two to prevent ships from entering or departing Iranian ports.

Additional attacks in the Strait of Hormuz are adding upward pressure on oil prices. Vessels have come under attack, with one incident reported by the UKMTO about 9 nautical miles southeast of Kumzar, Oman. Tehran claims that two 'hostile' oil tankers were attacked while transiting the region.

The Houthi militants in Yemen continue to pose a threat to commercial vessels transiting the Bab al-Mandeb Strait into the Red Sea. The group has conducted several attacks on cargo ships, causing one vessel to capsize and sink. Saudi Arabian troops positioned in central and eastern Yemen have been targeted.