Home›Forex›Major Pairs›Middle East tensions lift Brent above $91 as Hormuz tr…

Middle East tensions lift Brent above $91 as Hormuz transit stalls

Brent pushed above USD91 a barrel after Iran said it would adopt a fully offensive stance if US diplomacy fails and reports showed stalled tanker normalization through the Strait of Hormuz.

Reported · Written up by our desk · Major Pairs

Brent crude rose above USD91 per barrel as geopolitical tensions in the Middle East intensified, with developments around US-Iran diplomacy and shipping in key waterways driving the move, Action Forex said. The original 60-day memorandum of understanding signed by the US and Iran in June expired without an extension or final resolution, and Reuters cited an Iranian senior official saying Tehran would shift to a fully offensive stance if diplomacy with the US fails. Progress on normalizing tanker traffic through the Strait of Hormuz also stalled, while a Trump threat of military action against Oman added to tensions. Separately, the Houthis claimed an attack on vessels near Bab el-Mandeb. In the US, economic data also came in ahead of expectations, with the NY Fed Empire Manufacturing Index rising to 20.6 from 15.6 and the NAHB Housing Market Index edging up to 35 from 34 for August, according to Action Forex. Elsewhere, Sweden inflation expectations edged higher, while China’s retail sales and industrial production pointed to continued weakness in domestic demand.

Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%

More like this

Sources