Oil Weakens, US-Iran Dialogue Reduces Hormuz Risk
Oil prices weakened slightly in trading on Tuesday (June 30th), as market participants eyed the possibility of resuming talks between the United States and Iran. Hopes for dialogue have somewhat eased concerns about oil supply disruptions, although geopolitical risks in the Middle East have not completely disappeared.
At 4:56 a.m. Eastern Time (08:56 GMT), Brent crude fell 0.6% to US$72.69 per barrel. Meanwhile, West Texas Intermediate (WTI) crude weakened 0.5% to US$70.41 per barrel. This movement indicates market caution after oil prices had previously experienced sharp pressure following the emergence of a temporary peace agreement.
Tensions between Washington and Tehran remain a major market concern. The two countries reportedly halted the escalation of the conflict around the Strait of Hormuz, a strategic waterway through which approximately one-fifth of the world's oil supply passes. Although President Donald Trump stated that peace talks would continue in Doha, Iran has not confirmed its intention to resume negotiations with the US this week.
Meanwhile, White House officials confirmed that the Strait of Hormuz is now open to tanker traffic. However, uncertainty remains after Iranian Deputy Foreign Minister Kazem Gharibabadi stated that Tehran will continue with plans to jointly monitor maritime traffic in the strait, even though Oman has opted not to participate.
ANZ analysts believe that the possibility of increased Iranian control over traffic in the Strait of Hormuz could slow the recovery of crude oil exports from the Persian Gulf. High shipping risks are also considered to be overshadowing the prospects for oil supplies from the region, potentially making oil prices sensitive to geopolitical developments.
Source: Newsmaker.id
