2 weeks ago
Oil Prices Rise Fourth Day as Hormuz Fears Grow
Oil prices went up for the fourth day in a row.
Brent crude rose above $90 per barrel.
Traders are worried that the conflict involving the United States and Iran could interrupt oil supplies.
The United States and Iran gave different statements about whether ships can use the Strait of Hormuz.
Donald Trump said the waterway was open, but Iran said it was closed.
Trump also said that no negotiations with Iran were taking place.
A temporary ceasefire ended on Monday, and an Iranian official said the country was taking a more offensive military position.
Iraq approved other ways to export its oil.
Two large Chinese shipping companies stopped moving oil tankers through the Strait of Hormuz and the Bab al-Mandeb Strait.
Brent crude rose 26 cents to $91.28 per barrel in early Wednesday trading.
West Texas Intermediate gained 37 cents to $85.31 per barrel.
Both benchmarks advanced for a fourth consecutive session amid concerns about global oil supplies.
Donald Trump said no negotiations were underway with Iran and that the Strait of Hormuz remained open, while Iran claimed it was closed.
Iraq approved alternative crude-export routes, while two major Chinese shipping companies halted tanker movements through key waterways.
- Who
- The United States, Iran, Iraq, Chinese shipping companies, and oil-market investors are involved.
- What
- Oil prices rose for a fourth consecutive session as supply concerns grew amid an apparent US-Iran diplomatic deadlock and uncertainty over shipping routes.
- Where
- The developments involve the Strait of Hormuz, the Bab al-Mandeb Strait, Iraq, the United States, Iran, and China.
- When
- Early Wednesday trading; the temporary ceasefire had ended on Monday.
- Why
- Investors feared that conflict, uncertainty over negotiations, and possible restrictions on major shipping routes could disrupt global oil supplies.
United States’ position
Iran’s position
Negotiations
United States’ position
Donald Trump said no negotiations were underway with Iran.
Iran’s position
An Iranian official indicated that diplomacy was deadlocked and that Iran was shifting to a “fully offensive” military stance.
Strait of Hormuz access
United States’ position
Trump maintained that the Strait of Hormuz remained open to shipping.
Iran’s position
Iran claimed that the strategically important waterway remained closed to shipping.
Key facts
- Brent crude
- $91.28 per barrel after rising 26 cents, or 0.29%.
- West Texas Intermediate
- $85.31 per barrel after gaining 37 cents.
- Price trend
- Both benchmarks rose for a fourth straight session and settled at their highest levels since July 24 on Tuesday.
- Negotiations
- Donald Trump said no negotiations were underway with Iran, while prospects for a peace agreement appeared to diminish.
- Strait of Hormuz
- Trump said it remained open to shipping; Iran claimed it was closed.
- Iraq’s export plan
- Iraq approved crude exports through specialized international and domestic companies using several routes, with contracts lasting three months from September 1.
- Shipping changes
- Two major Chinese shipping companies halted oil-tanker movements through the Strait of Hormuz and the Bab al-Mandeb Strait and sourced cargoes outside the Gulf.
Quotes
President Donald Trump
U.S. President, speaking on U.S.-Iran tensions
“"No negotiations were underway with Iran and the Strait of Hormuz remains open."”
livemint.com
Sources
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