Oil Prices Rise as Hormuz Shipping Constraints Persist
Oil prices rose for the first time in two days as concerns over shipping disruptions through the Strait of Hormuz outweighed hopes for renewed US-Iran talks to end the Middle East conflict.
The Strait, which handles about 20% of global oil and liquefied natural gas shipments, remains largely shut despite a two-week ceasefire declared by Iran's Revolutionary Guards on May 12th.
According to sources, traffic through the waterway is at only a fraction of the 130-plus daily crossings seen before the conflict. Brent crude futures rose 71 cents or 0.8% to $95.50 a barrel, while US West Texas Intermediate crude was up 50 cents or 0.6% to $91.78.
US President Donald Trump said talks with Tehran on ending the war could resume this week after ending over the weekend without any agreement. However, the US has also enacted a blockade of shipping leaving Iranian ports that its military said has completely halted trade going in and out of the country by sea.