Oil Prices Hold Gains Amid Progress on Hormuz Deal
Oil prices held their gains on August 12 after rising nearly 11% over the previous four sessions. West Texas Intermediate traded near $83 a barrel, while Brent closed near $89.
The price stability comes as Pakistan's defense minister said the US and Iran are 'close to some sort of arrangement' over the Strait of Hormuz. This is according to Al Jazeera, citing a Qatari foreign ministry spokesperson, who also reported that talks between Iran and Oman have reached an advanced stage.
However, tensions in the region remain elevated, with a US Navy helicopter firing two hellfire missiles at a Panama-flagged cargo vessel attempting to breach a blockade of Iranian ports. This is causing traders to exercise caution, as 'it's hard to have any conviction' and the market is 'very headline driven', according to Helge Andre Martinsen, a senior oil analyst at DNB Bank ASA.