Oil Prices Jump 2% on Houthi Missile Attack Fears, Strait of Hormuz Talks
Oil prices rose about 2% on Thursday after a Houthi missile attack on Saudi Arabia revived supply disruption fears, but pared earlier gains on reports the US and Iran discussed reopening the Strait of Hormuz.
The Brent futures price rose $2.04 to $105.12 a barrel at 12:29 p.m. EDT (1629 GMT), while US West Texas Intermediate crude rose $1.99 to $94.15.
US and Iranian negotiators are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to the talks said.
The strait has become the central bargaining chip in efforts to end the nearly seven-month US-Iran conflict, with Iran seeking relief from the US blockade that is choking its economy and Washington seeking free passage for ships on the global oil supply route now blocked by Tehran.