Oil Prices Climb Amid Strait of Hormuz Uncertainty
Oil prices continued their upward trend on August 19, marking a fourth consecutive day of gains due to supply uncertainty. The Brent crude futures price rose by 26 cents, or 0.29%, to $91.28 per barrel by 8:04 AM Singapore time, while US West Texas Intermediate crude futures increased by 37 cents to $85.31 per barrel.
The rise in oil prices comes as tensions between the US and Iran persist. US President Donald Trump stated that no talks were taking place with Iran, contradicting Tehran's assertion that the Strait of Hormuz remained shut to shipping. However, a senior Iranian official revealed that his country was moving towards a 'fully offensive' military posture due to the diplomatic stalemate.
As a result of the ongoing conflict, two Chinese shipping giants have stopped sending oil tankers through the Strait of Hormuz and the Bab al-Mandeb strait. Instead, they are collecting oil cargoes outside the Gulf. In response, Iraq's cabinet approved mechanisms for exporting Iraqi crude through specialized international and local companies via multiple export outlets.