Commodities
Home›Commodities›Energy›Iran weighs a permanent Hormuz ban as oil market tensi…
Iran weighs a permanent Hormuz ban as oil market tensions persist
Iran’s parliament is reviewing a bill to permanently ban US, Israeli and other hostile vessels from the Strait, while related strikes and a proposed Gulf shipping corridor add uncertainty for crude flows.
Conflicting signals from Washington and Tehran are keeping oil markets on edge as Iran considers a permanent shipping ban for vessels in the Strait of Hormuz. OilPrice reports Iran’s parliament is reviewing legislation that would permanently bar US, Israeli and other hostile vessels from the strait, amid reported drone and missile activity in the area.
At the same time, US President Trump has said a final deal is close, even as Iranian officials indicate key terms remain unresolved. OilPrice says Tehran and Oman have agreed on coordinates for a proposed shipping corridor that would give Iran control over Gulf-bound vessels, but the new arrangement would not, by itself, guarantee security in the strait.
Elsewhere in the energy complex, Saudi Aramco is adjusting its September pricing. OilPrice reports Aramco cut its flagship Arab Light for Asia by 50 cents to a $2 per barrel discount versus Oman and Dubai, while raising Arab Medium and Heavy grades by $1.25 per barrel, a change that could signal an effort to increase output in the Gulf.
Price action heading into the close reflects the ongoing volatility around the region. OilPrice reports ICE Brent is set to close the week around $83 per barrel.
Latest closeBrent $83.46