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Iran rejects ceasefire proposal as Strait of Hormuz disruption persists
Ship traffic through the Strait has fallen to single digits since 20 July, with LNG tanker crossings at zero since 16 July, lifting Dutch TTF gas and pushing WTI back above $90.
Forexlive reports that Iran has rejected a ceasefire proposal relayed from Iraq, which was believed to be passed on from US President Trump. Iran’s stated reason is that the proposal does not address control over the Strait of Hormuz, leaving both sides with little room to reach a deal ahead of the weekend.
As tensions remain high, Forexlive says the Strait of Hormuz has effectively continued to disrupt global energy flows. Since 20 July, ship traffic along the strait has dropped to single digits, and Kpler is noting about three vessel transits per day this week, while LNG tanker crossings have been zero since 16 July.
The disruption has fed through to energy prices, with Forexlive citing a sharp move higher in natural gas. Dutch TTF natural gas futures have surged to their highest level since March, up more than 40% since the end of June.
Forexlive also points to spillover risks for other shipping corridors, including the Red Sea. It notes the Houthis have targeted vessels linked to Saudi interests or bound for the Saudi port of Jeddah, while WTI crude has risen more than 30% this month, revisiting six-week highs above $90.
Latest closeWTI crude $92.23 ▲6.2%|Nat gas $2.908 ▼0.6%