Strait of Hormuz Uncertainty Drives Oil Prices Higher
Oil prices continued their upward trend on Monday, marking a third consecutive day of gains as uncertainty over the Strait of Hormuz remained high. The Brent crude price rose above $84 per barrel, while West Texas Intermediate (WTI) hovered around $76.40 after easing from a 4% jump in the previous session.
The tension surrounding the strategic waterway persists, with Iran stating that talks with Oman on establishing a new shipping route are nearing an agreement. However, Tehran clarified that any deal would not lead to the immediate reopening of the waterway, citing ongoing demands for the US naval blockade's end and sanctions' lifting.
The situation has further clouded the outlook for energy markets, as regional tensions escalate. Iran-backed Houthi militants in Yemen claimed an attack on Saudi Arabia's Jazan refinery, while a tanker operated by Abu Dhabi National Oil Co. was reportedly attacked in the Strait of Hormuz over the weekend.