Oil prices hit three-week high — Reuters
Photo: Oil prices have reached a three-week high (Getty Images)
Oil prices rose today, August 20, to a three-week high amid fears that the stalemate in the US-Iran conflict will continue to disrupt supplies from the key Middle East region, according to Reuters.
Brent crude oil futures for October delivery rose by $1.2, or 1.3%, to $92.82 per barrel as of Thursday morning, while futures for US West Texas Intermediate (WTI) crude for September delivery gained 92 cents to $86.75 per barrel.
The more actively traded October WTI crude oil contract rose by $1.13, or 1.3%, to $85.52 per barrel.
Prices for both crude oil grades reached their highest levels since July 24, rising for the fifth consecutive session.
"Oil prices remained elevated as the market is supported by sporadic attacks in the Middle East but lacks fresh momentum without a major escalation," says Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment.
According to him, the market is likely to maintain a gradual upward trend, given the uncertainty surrounding peace talks between the US and Iran and tensions in relations between the United Arab Emirates, Oman, and Iran.
Shipping through the Strait of Hormuz has slowed as most shipowners are avoiding this key waterway due to the lack of clear signals regarding its reopening following the blockade imposed by the US during the war with Iran.
Situation in Hormuz Strait
The US military has quietly established a shipping corridor in the Strait of Hormuz.
The operation has been underway for several weeks. Between 15 and 20 tankers have entered and exited the strait via the southern channel along the coast of Oman. Millions of barrels of oil are being transported daily.
US President Donald Trump also announced an alternative to the Strait of Hormuz. Oil can be imported from a completely different part of the world.
Before this, Trump once again shared his plans to declare the Strait of Hormuz US territory.
At the same time, Iran stated that the Strait of Hormuz would not be reopened until the US fully complies with all the terms of the Islamabad Memorandum of Understanding.
In addition, Iran is preparing for a possible escalation not only in the Strait of Hormuz area but also in the broader region.
