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Oil traders stay bearish as Middle East disruptions deepen
Brent fell below $80 per barrel and WTI dropped under $75 after U.S.-Iran peace talks were said to have resumed, even as Hormuz and Red Sea risks add logistical constraints for Saudi exports.
Oil traders are still largely positioned bearish on crude despite continued hostilities in the Middle East and fighting that has expanded to the Red Sea, OilPrice reports. The outlet says traders also appear to be discounting how increased disruption could tighten supply routes and export capacity. Earlier this week, Brent crude sank below $80 per barrel and WTI dropped below $75 after President Trump said peace talks between the United States and Iran had resumed. Iranian officials denied that any talks were underway, but traders focused on other signals. OilPrice points to negotiations involving Iran over control of the Strait of Hormuz with Oman as another factor traders are treating as bearish for oil. The outlet also highlights attacks by Yemeni Houthis on Saudi tankers in the Red Sea, which is forcing Saudi oil exports to reroute via the Suez Canal and through a pipeline to the Mediterranean coast of Egypt with smaller capacity than the Persian Gulf to the Red Sea route. Further, OilPrice notes Iran’s parliament is discussing a bill that would ban access to the Strait of Hormuz for U.S., Israeli, and other “hostile” vessels. The outlet adds that such a measure would not improve prospects for peace between Tehran and Washington, and it could complicate energy carrier passage in the region.
Latest closeWTI crude $78.07 ▲3.8%|Brent $83.46