Oil Prices Climb as Investors Eye Fragile Iran-Oman Deal
Oil prices rose on Thursday due to cautious investor sentiment surrounding Iran-Oman talks and potential supply tensions. The Strait of Hormuz, a critical waterway for global oil supplies, has been at the center of diplomatic efforts between the two nations.
According to Iranian Foreign Ministry spokesperson Esmaeil Baghaei, an understanding has been reached on the geographic coordinates for shipping routes through the strait. However, senior Iranian sources and regional officials warn that any new deal could be fragile and subject to interference from third parties.
A proposed agreement between Iran and Oman would grant Tehran control over ships entering the Gulf through the Strait of Hormuz, a significant concession to Iran. The strait handles around one-fifth of global daily oil and liquefied natural gas supplies.
Despite these developments, geopolitical risks persist in the region. Houthi attacks on Saudi tankers have renewed supply tensions, with Yemen's Iran-aligned Houthis claiming missile strikes on two Saudi vessels off the coast of Yanbu and in the Gulf of Aden.