Oil prices keep rising amid uncertainty over Hormuz Strait
Photo: Oil prices continue to rise amid uncertainty surrounding the Strait of Hormuz (Getty Images)
Oil prices are rising for the fourth consecutive day amid conflicting statements from the US and Iran regarding whether the Strait of Hormuz is open to shipping, according to Reuters.
Brent crude oil futures rose 69 cents, or 0.8%, to $91.71 per barrel.
The price of US West Texas Intermediate (WTI) crude oil futures rose by 76 cents, or 0.9%, to $85.70 per barrel.
Trading in both grades during the previous session on Tuesday, August 18, closed at their highest levels in more than three weeks amid deteriorating prospects for a peace deal between the US and Iran.
Jun Goh, senior oil market analyst at Sparta Commodities, explains that shipping risks were rising again as attacks by Iran and the Houthis remained widespread in both key chokepoints, which was supporting oil prices in the near term. He was referring to the Strait of Hormuz and the Bab el-Mandeb Strait.
According to data released today, ship traffic through the Strait of Hormuz has slowed, as most shipowners have been avoiding this vital waterway due to the lack of clear signals regarding its reopening after the blockade.
To bypass the Strait of Hormuz, the Iraqi government has approved mechanisms for exporting Iraqi crude oil through specialized international and local companies, as well as through a number of export markets.
Strait of Hormuz situation
A few days ago, US President Donald Trump once again shared his plans to declare the Strait of Hormuz US territory. He also provided an update on the current state of shipping through the strait.
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 but also in the wider region.
