Oil near US$100 as Iran says Hormuz deal with Oman is close
Strong Chinese buying and the Russia-Ukraine war tighten the market
Brent oil prices are near US$100 as an Iranian deal with Oman to manage shipping through the Strait of Hormuz remains close. The global benchmark has increased 1.6 percent over the past two trading sessions while West Texas Intermediate edged towards US$93 on Tuesday. Iran indicated the agreement is near and might include a temporary safe route, raising concerns about the US response following its recent strike on Iranian tankers.
Saudi Aramco's Jazan facilities near the Red Sea came under attack, though damage was minor, adding to ongoing tensions. Iran and Oman have been pursuing control of the strait, potentially introducing transit fees. Despite concerns about deeper disruptions to energy flows, oil shipments continue exiting the Persian Gulf, with daily flows at about 10 million barrels, mostly crude.
Refined fuels like diesel have seen further price gains due to the Russia-Ukraine war exacerbating market tightness. Goldman Sachs analysts anticipate a prolonged Mideast conflict may sustain shipping disruptions into 2027, leading to an increase in their oil-price predictions.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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