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Oil holds losses as Iran and Oman reach Hormuz shipping deal
West Texas Intermediate traded near $75 a barrel after dropping 11% in the first three sessions of the week, while Iran said any route would be temporary for two to four months.
Oil prices steadied but remained under pressure after Iran said it reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz, raising the prospect of some energy traffic resuming along the key waterway.
West Texas Intermediate was near $75 a barrel after falling 11% over the week’s first three sessions, while Brent closed above $79 on Wednesday. A joint statement from both countries is being reviewed, and Iran said a deal would be struck if third parties do not obstruct the process.
Iranian Deputy Foreign Minister Kazem Gharibabadi told domestic media the route would be temporary and remain active for two to four months, adding that the understanding does not mean a full reopening of the strait. Traders have also been cautious about fully unwinding long positions, given uncertainty over whether the accord could reduce shipping risks.
Separately, Iran-backed Houthi militants in Yemen said they targeted a Saudi oil tanker in the Gulf of Aden and threatened others in the Red Sea, underscoring ongoing risks to shipping in the region, according to LiveMint Markets.
Latest closeBrent $79.49 ▲0.2%