Hormuz Uncertainty Keeps Oil Prices Firm
Oil prices moved higher on Friday as markets remained concerned about plans to reopen the Strait of Hormuz. Investors are still assessing the possibility that Iran could impose bans and penalties on vessels it considers hostile or in violation of new shipping rules.
Brent crude rose around 0.9% to US$83.24 per barrel, while West Texas Intermediate (WTI) gained 0.5% to US$77.71 per barrel. Both benchmarks had also settled more than US$3 higher in Thursday’s session.
The rebound came after Iran reviewed a proposed regulation that could prohibit U.S. and Israeli vessels from passing through the Strait of Hormuz. The waterway is crucial to global energy markets, as roughly one-fifth of the world’s oil and liquefied natural gas trade passed through the strait before the war began in late February.
Despite the latest rebound, Brent and WTI are still heading for weekly losses of around 8%. Prices had fallen sharply earlier in the week as investors grew more optimistic that the Iran-U.S. conflict could ease and energy shipments through Hormuz could return to normal.
However, recent developments suggest tensions are far from resolved. Iran is reportedly seeking fees equal to around 5%–7% of cargo value from vessels using the strait, while Oman is discussing charges of about 3%. The United States, meanwhile, has rejected the idea of any transit fees.
Source : Newsmaker.id
