Oil Prices Hold Steady Amid US Sanctions and Energy Cost Pressures

Oil prices have remained relatively stable around $90 per barrel despite the US imposing what it claims are the 'toughest sanctions in history' on Iran. The uncertainty surrounding Hormuz transits will likely continue to drive price developments.

The Qatari and Pakistani mediation efforts have failed to bring the warring sides closer, with President Trump rejecting the extension of the June MoU in any form. As a result, the passage through the Hormuz strait remains blocked until Washington lifts sanctions, ends its blockade, and pays compensation.

Saudi Aramco has sold at least 4 million barrels of Arab Medium and Heavy to PetroChina for September loading outside the Hormuz strait, increasing Gulf transits as Yanbu loadings falter. Meanwhile, six EU countries want to discuss an EU-wide oil windfall profit tax in September talks.

The UK's household energy price cap will rise to £1,723 from October due to increased natural gas prices, which have doubled since the war began. India's coal plants are also facing critically low inventories, with 45 out of 130 units having less than a month's worth of fuel.