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Oil rebounds as fresh Houthi threat weighs on Middle East shipping

Brent hovered near $80 a barrel and WTI around $76 after oil gave up early losses tied to hopes of reopening the Strait of Hormuz.

Reported · Written up by our desk · Energy

Oil prices erased an earlier decline as traders weighed a renewed threat from Yemen’s Houthi militants to target Saudi vessels in the northern Red Sea, a key alternate route when the Strait of Hormuz is disrupted. Bloomberg, via LiveMint, reported Brent trading near $80 a barrel and West Texas Intermediate around $76 after losing more than 10% over the prior two sessions.

Oil had been falling during the week on optimism that a deal could reopen Hormuz and restore Persian Gulf supply flows. LiveMint said Qatar stated an interim proposal had been drafted, and both Washington and Tehran signaled progress to reopen the waterway through talks.

Separately, Axios reported the US, Iran and Oman were nearing an interim, 60-day accord to reopen the conduit, with Washington aiming for an announcement later Wednesday. The proposal would involve no tolls or fees, with inbound vessels using a northern lane and outbound traffic using a southern one.

Even if a short-term shipping arrangement is reached, LiveMint noted it may not end the broader conflict or address US concerns about Iran’s nuclear program, as the Houthis remain a threat in the Red Sea. The report also said Saudi Arabia has held talks with the militants via Omani mediators and is preparing military options if negotiations fail.

Latest closeBrent $78.86 ▼5.9%

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