Iran's Hormuz Demands Send Oil Prices Soaring Amid Saudi Disruption
The Strait of Hormuz, through which approximately 20% of the world's daily oil supply passes, remains closed due to Iran's insistence that major concessions be met before it reopens. The country has set six sweeping demands, including an end to US attacks on Iran and its allies, the lifting of naval blockades, and compensation for war damages.
Brent crude rose more than 1% after Tehran hardened its position, with futures standing at $84.11 a barrel, up 0.7%. The demands have killed hopes of a near-term diplomatic resolution, and Iran has made it clear that a bilateral arrangement with Oman does not constitute a reopening to all traffic.
The Houthis in Yemen are also intensifying pressure on Saudi Arabia's energy infrastructure, targeting the Jazan refinery and the port of Yanbu. This dual supply shock represents the largest disruption since the 1970s oil crisis.