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WTI holds near $77.50 as Strait of Hormuz tensions pressure supply
Markets steadied after Iran said it reached an agreement with Oman on a proposed Strait of Hormuz shipping route, even as new threats raise the risk of further disruptions.
WTI was steady after modest gains, trading around $77.50 per barrel during Asian hours on Friday, as renewed tensions around the Strait of Hormuz unsettled global markets. FXStreet reports that the volatility follows reports of explosions near Qeshm Island and Iran’s stated intent to restrict transit, including a draft Iran-Oman proposal reviewed by Iran’s parliament that would bar US and Israeli vessels and require compensation from countries Tehran deems hostile. The framework also includes penalties equal to 20% of a vessel’s cargo value for violations, and it says the waterway would only fully reopen once a US maritime blockade is lifted.
The same report says Iran is also trying to raise the potential cost of military action by warning neighboring Gulf states that any new US attack on its territory would trigger retaliatory strikes against critical energy infrastructure across the region. Separately, Yemen’s Houthis announced missile and drone attacks on Saudi deployments in Marib and Hadramout, alleging large casualties and damage to camps and equipment.
BNY strategists, as cited by FXStreet, said oil prices have steadied as traders digested Iran’s claim of an agreement with Oman on a proposed shipping route, which helped calm immediate fears of supply disruption, though market participants continue to watch developments closely.
Latest closeWTI crude $78.07 ▲3.8%