Oil Prices Hold Steady Amid Hormuz Traffic Slowdown
Oil prices have stabilized in early trade on Monday after a significant decline in vessel movements through the Strait of Hormuz raised concerns over global crude supplies. The Strait, a crucial route for energy shipments, saw only five commodity vessels cross it on Saturday and none on Sunday compared to 31 crossings during the previous weekend.
Kpler data showed the drastic reduction in traffic, which has major implications for energy markets as the waterway handles one-fifth of global crude oil and liquefied natural gas shipments. The slowdown comes amid stalled US-Iran negotiations with Iranian Foreign Minister Abbas Araqchi stating Tehran had yet to decide on resuming talks.
US President Donald Trump warned Americans to expect higher gasoline prices due to ongoing tensions in the region. Oil benchmarks Brent crude futures gained 0.42 per cent to $88.89 a barrel, while US West Texas Intermediate (WTI) rose 0.21 per cent to $82.57.