Iran's Hard-Line Stance Keeps Risk Premium in Focus for Brent
The negotiations between Iran and Oman over a new shipping framework through the Strait of Hormuz are finely balanced, with Tehran linking any lasting arrangement to broader demands on the US.
This development has kept a risk premium in focus for Brent Oil markets. Despite rebounding from midweek lows, Brent ended last week sharply lower, down 7.29% to $83.55 per barrel.
The appointment of former Revolutionary Guard commander Mohsen Rezaee to head the Supreme National Security Council reinforces hard-line influence at the centre of decision-making in Iran.
Iranian officials insist they are close to an agreement with Oman, but any technical agreement on shipping routes would not by itself lead to a full reopening of the waterway. Tehran has stressed that it continues to tie any lasting Hormuz arrangement to wider demands on the US, including sanctions relief and security guarantees.