Oil Still Trying to Survive amid Hormuz Conflict
Oil prices remained stable on Monday (May 4th), amid market doubts about US President Donald Trump's plan to guide neutral ships through the Strait of Hormuz. Brent held above US$108 per barrel after a sharp drop in early trading, while WTI hovered around US$102 per barrel.
The US plan is intended to help ships stranded by the war with Iran navigate the strategic waterway. Trump said Washington would work to help ships and crews safely exit the Strait of Hormuz, but the market remains skeptical about whether the plan can actually be implemented without sparking new tensions.
Concerns intensified after a tanker was reportedly hit by a projectile in waters about 78 nautical miles north of Fujairah, United Arab Emirates. Although the crew were reportedly safe, the incident reinforced the perception that security risks in the world's key energy shipping lanes remain extremely high.
The US is said to be preparing military support, including guided-missile destroyers, aircraft, and drones, to bolster shipping security. However, Iran responded coolly and warned that any US interference in the Strait of Hormuz could be considered a violation of the ceasefire.
These tensions keep oil prices vulnerable to wild fluctuations. As long as the Strait of Hormuz remains unsecured and the blockade persists, the market will continue to worry about supply disruptions, rising inflation, and a potential global economic slowdown due to high energy prices.
5 Key Points:
- Brent prices remain above US$108 per barrel, while WTI hovers around US$102 per barrel.
- Trump plans to help neutral ships navigate the Strait of Hormuz.
- A tanker was reportedly hit by a projectile near Fujairah, but the crew survived.
- Iran warns that US interference in Hormuz could be considered a violation of the ceasefire.
- Oil supply risks remain high as long as the Strait of Hormuz remains unsecured. (asd)*
Source: Newsmaker.id
