Iran-Oman Talks Spark Oil Price Surge as Supply Risks Persist
Oil prices rose on Thursday as investors monitored Iran-Oman talks for signs of restored shipping through the Strait of Hormuz. Brent crude futures climbed $0.83, or 1.04%, to $80.28 a barrel by 11:58 GMT, while US West Texas Intermediate crude gained $0.61, or 0.81%, to $75.83.
Traders remain cautious due to the short-lived Memorandum of Understanding signed in June, which has left them with 'understandable anxiety' that any new deal could prove equally fragile, said Tim Waterer, chief market analyst at KCM Trade.
The proposed Iran-Oman deal aims to end the US-Iran conflict and would grant Tehran authority over ships entering the Gulf via the Strait of Hormuz. The Strait accounted for roughly 20% of global daily oil and liquefied natural gas shipments before the conflict erupted in late February.