Oil Prices Edge Lower Amid Hormuz Concerns and Russia-Ukraine Tensions
Oil prices have been edging lower for four consecutive days due to ongoing concerns about energy flows through the Strait of Hormuz and rising tensions between Russia and Ukraine.
Brent crude was trading near $87 a barrel, down more than 7% this week, while West Texas Intermediate (WTI) was near $82. The decline comes despite some optimism over a revenue-sharing agreement between Iran and Oman on navigation through the Strait of Hormuz.
Analysts are cautious about pricing in another ceasefire emerging, as talks between Oman and Iran are seen as a precursor to an agreement between Tehran and Washington. However, crude appears to be flowing from the Persian Gulf, with US President Donald Trump claiming that 10 million barrels of oil had exited Hormuz on Tuesday.
Risks remain, including frequent attacks on Russian oil and refining infrastructure by Ukraine, which could further threaten global energy supplies. A tanker was also hit by an unknown projectile in the Strait of Hormuz on August 25, according to the UK Maritime Trade Operations.