Oil prices fell on Friday but kept on track for a monthly rise of about a fifth, as more supplies flowed through crucial maritime chokepoints, despite a lack of major breakthroughs in talks between the United States and Iran.

Brent futures fell $1.03, or 1.2 per cent, to $88 a barrel by 0215 GMT, while U.S. West Texas Intermediate (WTI) crude slipped $1.50, or 1.8 per cent, to $82.09 a barrel. On a monthly basis, both benchmarks were set to rise about 20 per cent.

Crude oil is edging lower as rising tension Middle East tension is being offset by signs of increased flows in the Strait of Hormuz, said Daniel Hynes, a senior commodity analyst at ANZ.

The strait, which usually carries about a fifth of global shipments of crude oil and liquefied natural gas, has been a focal point for oil markets as it has been largely blockaded since the February 28 launch of the U.S.-Israel war on Iran.

Saudi Arabia seeks to lead a coalition to boost defence cooperation in the Bab El-Mandeb Strait, the Red Sea and the Gulf of Aden, all chokepoints for energy supplies.

The Saudi defence ministry said 14 nations, including Djibouti, Egypt, Pakistan, Sudan and Turkey, were in support of the multinational maritime defence coalition.

Iran-aligned Houthi militants in Yemen declared a naval blockade last week on Saudi Arabia, threatening the Red Sea route for its oil exports, an alternative to the Strait of Hormuz.

Although tanker traffic has continued through the Strait of Hormuz and the Red Sea, higher security risks have boosted freight costs and insurance premiums to embed a significant geopolitical risk premium in oil prices, said Priyanka Sachdeva, analyst at Phillip Nova.

“While prices eased from recent highs, the broader trend remains constructive,” Sachdeva said. (Reuters)

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Oil prices erased some of their previous gains on Thursday, despite escalating attacks in the Gulf as investor focus shifted to supply flows through the key chokepoints in the region.

Brent futures fell 96 cents, or 1.06 per cent, to $89.78 a barrel as of 0418 GMT. U.S. West Texas Intermediate (WTI) crude fell 64 cents, or 0.76 per cent, to $83.82 a barrel.

Brent settled up 7.91 per cent in the previous session and WTI up 6.56 per cent in one of the sharpest spikes of the Iran war, reversing a 5 per cent plunge on Tuesday after a pause in hostilities in the five-month conflict.

Prices surged as U.S. President Donald Trump threatened on Wednesday to hit Iran “very hard” after an Iranian missile attack on Tuesday on a U.S. base in Jordan.

On Wednesday, the U.S. and Saudi Arabia attacked Iran-backed paramilitary forces in Iraq, the first time that Saudi had publicly joined U.S. air strikes, in retaliation for drone attacks on Saudi oil targets launched from Iraq.

The U.S. also carried out two hours of attacks on Iran on Wednesday, the U.S. Central Command said. That ended a lull in U.S. strikes on Iran that began over the weekend.

“Trump’s ‘hit hard’ rhetoric caused the price spike immediately but looks like the market has fully priced (that) in and (is) considering the ‘TACO’ possibility right now,” said Lin Ye, vice president of commodity markets, oil, at Rystad Energy, referring to the acronym Trump Always Chickens Out.

Ye said the market is following a pattern: geopolitical headlines are triggering rapid price spikes, but those gains are often short-lived as actual supply flows and parallel diplomatic efforts tend to determine how long those upward price moves persist.

Prices are being capped as crude supply is still moving from the key Gulf region despite the near shutdown of the Strait of Hormuz. Iran closed the waterway, through which around a fifth of global oil and gas flows previously passed, after the U.S.-Israeli war began on February 28.

Rystad Energy estimates about 13 million barrels per day of oil from the Gulf is still reaching markets.

Even after the Iran-aligned Houthis in Yemen imposed a naval blockade on Saudi Arabia in the Red Sea on July 20, disrupting shipping in the Bab el-Mandeb strait, some cargoes, particularly on Chinese-connected tankers, have flowed to markets.

“While overall volumes are reduced, oil continues to leak out of the region through multiple channels, and additional workarounds are being explored. The longer this situation persists, the more these alternative routes and methods will erode Iran’s leverage over the Strait of Hormuz,” IG market analyst Tony Sycamore said in a note. (Reuters)

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Oil prices fell 1 per cent on Tuesday as market participants continued to weigh a pause in U.S. strikes on Iran, which has raised hope of a diplomatic solution to their conflict and the normalisation of Middle East energy flows.

Brent crude futures were down $0.54, or 0.6 per cent, at $87.82 by 0046 GMT. U.S. West Texas Intermediate crude was at $81.95 a barrel, down $0.66, or 0.8 per cent.

Both contracts fell 1 per cent earlier in the session to their lowest level in more than a week.

U.S. President Donald Trump said on Monday the United States was having “good talks” with Iran and that there was a chance of a resolution. However, he said U.S. strikes would resume if negotiations failed while Iran issued similar comments about retaliation.

“For now, the relief that an off-ramp has been found has taken the heat out of prices and eased concerns around Houthi attacks on Saudi infrastructure. However, the situation remains highly fluid,” IG analyst Tony Sycamore said in a client note.

Afrah al-Zouba, the foreign minister-designate of Yemen’s internationally recognised Saudi-backed government, said Yemen-based Houthi fighters aimed to replicate Iran’s control of shipping through the Strait of Hormuz at Bab el-Mandeb.

“Whether the Houthis have the military capacity to enforce a comprehensive blockade is questionable, especially given that the Saudis will attack them relentlessly. Still, there is no doubt that traffic has dropped off significantly in the Red Sea and the Strait of Hormuz,” said Marex analyst Edward Meir.

“A key reason prices are not even higher than they are right now is the demand destruction that is taking place, especially in Asia,” Meir said.

Barclays analysts said in a note on Monday “flows through the strait remain subdued”. They said, in the week ended July 24, crude oil and refined product net exports through the strait averaged 2.9 million barrels a day compared with 5.9 million in the previous week.

Elsewhere, U.S. crude oil stockpiles likely fell last week alongside gasoline, while distillate stocks likely rose, a preliminary Reuters poll showed on Monday. (Reuters)

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Oil prices tumbled Monday (Jul 27) as a pause in tit-for-tat strikes between the US and Iran boosted hopes for a return to their ceasefire and negotiations on reopening the Strait of Hormuz.

After 13 days of attacks on sites in the Islamic republic, the United States held fire over the weekend and Donald Trump’s UN envoy said the US president was “giving talks some space”.

Tehran in turn said it would stop its retaliatory attacks on regional neighbours, handing Gulf shipping and the oil industry a respite.

The two resumed hostilities this month, breaking a fragile truce, after Iran attacked ships passing through Omani waters in the Strait of Hormuz, sparking a pattern of escalation.

That derailed diplomatic efforts between Washington and Tehran, but the conflict then expanded beyond the vital energy corridor, and saw Iran-backed Houthi rebels in Yemen strike Saudi vessels in the Bab al-Mandeb Strait, a crucial passage into the Red Sea.

Crude prices soared on the flare-up, with Brent breaking back above US$100 a barrel last week for the first time since May. News that shipping continued in the Red Sea helped investors pare the gains Friday.

However, Trump’s decision to hold off more strikes and Iran’s claims Sunday that it had made progress in talks with Oman on management of the Strait of Hormuz provided some much-needed relief.

The discussions focused on “common principles and operational mechanisms” for ensuring the safe passage of shipping through the strait while respecting the sovereign rights of the two states, Iran’s foreign ministry spokesman Esmaeil Baqaei said.

Meanwhile, a report said Pakistan was looking at resuming US-Iran peace talks, following a push initiated by China.

Both main oil contracts sank Monday, with Brent shedding more than 7 per cent at one point to briefly drop back below US$90.

“It looks as if developments in the Middle East have moved in a positive direction over the weekend, adding some credibility to the notion that oil above US$100 a barrel seems to induce de-escalatory behaviour from both sides,” wrote National Australia Bank’s Sally Auld.

The positive developments eased worries about a reignition of inflation and a fresh round of interest rate hikes, in turn helping most equity markets higher. 

However, concerns about the sustainability of the AI boom and questions over the eye-watering sums pumped into the sector continue to dog traders, as tech firms bear the brunt of selling.

Seoul again led the losses, shedding more than 1 per cent with chip giants SK hynix and Samsung in the firing line once more.

Taipei and Singapore fell, with Jakarta also in retreat following the surprise resignation of Indonesian central bank boss Perry Warjiyo citing personal reasons.

Tokyo rose, though tech firms Advantest, Kioxia and Tokyo Electron suffered more hefty selling pressure.

Hong Kong, Sydney, Shanghai, Wellington and Manila were also up.

Traders will be keenly awaiting the release of earnings from SK hynix, Samsung and Japan’s Kioxia report this week, while US titans Microsoft, Meta, Apple and Amazon are also due, with focus on their outlooks and spending plans.

Tim Waterer, of KCM Trade, said: “Traders remain somewhat nervy about the scale of the capex being committed, given lingering concerns over how long the return-on-investment phase may take to fully materialise.”

Also in view this week is the Federal Reserve’s latest policy decision in light of the latest US-Iran flare-up and recent data indicating inflation easing.

Bets on a hike have risen over the past week, though analysts expect officials to stand pat on Wednesday.

However, Jenny Zeng at Allianz Global Investors warned: “While the (policy board) is likely to remain on hold in July, we continue to expect 50 basis points of tightening by year-end.”

In company news, China’s leading memory chipmaker CXMT jumped 470 per cent on its market debut in Shanghai, briefly surpassing megabank ICBC as the mainland’s most valuable company.

The breathtaking surge came after the Anhui-based company had raised US$9.8 billion in a blockbuster initial public offering, Bloomberg News reported, making it China’s biggest-ever mainland tech share sale. (AFP/CNA)

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Oil prices surged in early Asian trade on Monday (Jul 20) after the United States struck Iran for a ninth consecutive night and a vessel caught fire in the Strait of Hormuz.

The gains reflected growing fears that renewed fighting in the Middle East could disrupt oil shipments through the strait, a key corridor for global energy.

Brent crude for September delivery rose 2.72 per cent to US$90.50 a barrel by around 1am GMT (9am, Singapore time). It had briefly crossed US$91, its highest price since June.

US benchmark West Texas Intermediate gained 2.39 per cent to US$84.46.

Britain’s maritime security agency UKMTO said a ship was on fire in the strait on Monday, in waters around 15km northwest of Oman.

It did not specify the cause of the blaze.

US President Donald Trump told reporters on Sunday evening that the US was hitting Iran “very hard” in retaliation for the recent deaths of American troops in the Middle East.

Separately, Kuwait’s military said on Monday it was responding to an Iranian drone attack targeting its territory. (CNA/ AFP)

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Oil rose on Wednesday as President Donald Trump reimposed a naval blockade on all Iranian ports and Iran launched retaliatory strikes on U.S. infrastructure in the region.

For the second straight session, Brent closed at its highest since June 12 and West Texas Intermediate at its highest since June 15 and rose further on early Wednesday trade. 

Brent rose $1.46, or 1.72 per cent, to $86.19 a barrel by 0029 GMT while WTI  was up $1.11, or 1.4 per cent, to $80.40 a barrel. 

Oil prices closed up 2 per cent to a one-month high on Tuesday as attacks deepened a supply disruption in the Strait of Hormuz, where some one-fifth of the world’s oil and liquefied natural gas transited prior to the beginning of the war. 

Early on Wednesday, the U.S. also began a fresh round of strikes “to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz,” the U.S. military said.

Tehran says it has again closed the strait after hostilities between Iran and the U.S. reignited last week, fraying an already fragile truce reached in June after several months of fighting.

“I’ll save the energy targets for last, but ultimately we’ll hit energy targets,” Trump told Fox News in an interview aired Tuesday night on “Special Report with Bret Baier”. 

Iran’s army said early on Wednesday that it had launched drone attacks against U.S. positions at Jordan’s Azraq base. There was no immediate comment from the Pentagon.

Iran’s ​Islamic Revolutionary Guard Corps said they targeted weapons and storage facilities in Bahrain and Kuwait. Reuters could not immediately verify the reports.

The flare-up over the last few days has heightened doubts that a memorandum of understanding signed last month would lead to a permanent halt to the war, which has engulfed Iran’s neighbors.

“The chances of oil moving back toward $100 in the reasonably near term are still meaningful if hostilities intensify which damages energy infrastructure around the Gulf,” Tim Waterer, chief market analyst at KCM Trade said, noting Brent prices could remain at $75-$80 a barrel if diplomatic efforts helped reopen the strait. 

“For now, the risk premium is still embedded, but it’s not a one-way bet given that there remain incentives for both sides to find a diplomatic solution.” (Reuters)

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Global oil prices surged on Wednesday after the United States launched a series of military strikes against Iran, escalating tensions in West Asia and raising fresh concerns over the security of shipping through the Strait of Hormuz, one of the world’s most critical energy chokepoints.

Brent crude, the global benchmark, jumped 5.49 per cent to $75.94 a barrel, while US West Texas Intermediate (WTI) crude rose 2.84 per cent to $72.44 a barrel in early trade, extending strong gains from the previous session.

The rally came after the US military carried out strikes against Iranian targets in response to attacks on three commercial vessels transiting the Strait of Hormuz, according to US Central Command. 

The latest escalation has renewed fears that hostilities could disrupt oil and liquefied natural gas (LNG) shipments through the narrow waterway, which handles nearly a fifth of the world’s oil trade.

On Tuesday, WTI crude had already settled 2.8 per cent higher after Washington revoked the general licence that had authorised the sale of Iranian crude, adding another layer of pressure on global energy markets.

The security situation deteriorated further after Qatar accused Iran of attacking three commercial vessels in the Gulf. Among them was the Al Rekayyat, a large Qatari LNG tanker, which was reportedly struck by a drone, triggering a fire in its engine room. The vessel’s crew was reported safe and was being evacuated.

Separately, maritime security sources said a Saudi-flagged crude oil tanker, believed to be the supertanker Wedyan, was also damaged off the coast of Oman. The exact cause of the damage remains unclear.

The attacks have intensified concerns over the safety of maritime traffic through the Strait of Hormuz, a narrow passage connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea. The route is used daily by millions of barrels of crude oil and refined petroleum products destined for Asia, Europe and North America.

Any prolonged disruption to shipping through the strait could tighten global oil supplies and increase transportation costs, analysts said.

Energy markets have remained highly sensitive to geopolitical developments in the region, with traders closely watching for any signs that the conflict could spread further or lead to restrictions on tanker movements. (First Post)

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Oil prices continue to fall after Qatar said Iran and the US had made “positive progress” in indirect technical talks in its capital Doha.

Brent futures were down 73 cents, or 1.02 percent, to $70.84 a barrel by 01:02 GMT, while US West Texas Intermediate crude fell 83 cents, or 1.21 percent, to $67.75 a barrel.

In the previous session, both benchmarks fell more than 1 percent to their lowest levels in four months. (Al Jazeera)

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Oil prices have climbed following the latest flare-up in hostilities between the United States and Iran.

Brent crude, the primary international benchmark, rose about 0.9 percent on Monday after tit-for-tat US and Iranian strikes over the weekend renewed doubts about a return to normal shipping in the Strait of Hormuz.

Brent futures for August delivery stood at $73.21 a barrel as of 03:30 GMT, 127 cents higher than the day before the US and Israel launched their war on Iran on February 28.

“Brent’s partial rebound this morning reflects a market that had perhaps run too quickly on ceasefire optimism,” Fabien Yip, a market analyst at IG in Sydney, Australia, told Al Jazeera.

“Oil had nearly unwound its entire war premium, despite an MoU with no enforcement details and ongoing strikes. Thursday’s attack on a commercial vessel was a reality check, and this weekend’s tit-for-tat exchanges have compounded that,” Yip said.

Asian stock markets were mixed on Monday morning, with losses in Tokyo and Seoul and gains in Hong Kong and Taipei.

Japan’s benchmark Nikkei 225 was 0.7 percent lower, while South Korea’s Kospi was down 1.9 percent.

Japanese and Korean stocks tied to the AI boom saw some of the biggest losses amid heated debate about whether tech firms’ massive investments in the emerging technology will pay off.

Japanese tech giant SoftBank Group fell about 5 percent, while Advantest Corporation, a key maker of semiconductor testing equipment, slumped 3.7 percent.

South Korean memory chip giants Samsung Electronics and SK Hynix dropped about 5 percent and 4 percent, respectively.

Hong Kong’s benchmark Hang Seng Index and Taiwan’s Taiex both rose, gaining 2.2 percent and 1.4 percent, respectively.

“Quarter-end profit-taking is adding to the selling pressure, with investors locking in gains from what has been a remarkable run. The Kospi is up roughly 95 percent this year, and the Nikkei up 37 percent,” IG’s Yip said.

“The underlying concern, however, is whether the AI boom can continue to translate into sustained earnings growth, or whether margin pressure is arriving sooner than the market anticipated.”

US Central Command announced strikes against Iran on Friday and Saturday, citing Iranian attacks on two commercial vessels in the Strait of Hormuz, which in peacetime serves as a conduit for about one-fifth of the global trade in oil and liquified natural gas.

Iran responded to the strikes by launching a series of missiles and drones targeting US military assets in Bahrain and Kuwait.

Washington and Tehran agreed to cease their attacks and renew their negotiations on ending the war, multiple media outlets reported late on Sunday, citing unnamed US officials.

Axios, citing an unnamed senior US official, reported that the sides would hold talks in Doha, Qatar, on Tuesday.

Iran has yet to comment on the reported agreement to cease hostilities or the planned talks.

US President Donald Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding to end the war on June 17, but the agreement has repeatedly come under strain due to flare-ups in hostilities and disagreements about the meaning of the text. (Al Jazeera)

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Oil prices fell about 4% Wednesday as tankers continued to transit the Strait of Hormuz, raising hopes that the worst of the Middle East supply disruption is over.

West Texas Intermediate futures closed at $70.34 per barrel after hitting a session low of $69.63 per barrel. It was the first time the contract has fallen below $70 since March 2.

Brent crude futures, the international benchmark, fell 4.3% to settle at $73.74 per barrel, notching its lowest level since before the U.S. and Israel launched the war against Iran on Feb. 28.

U.S. President Donald Trump on Wednesday criticized oil companies for not lowering gasoline prices in line with the recent decline in crude prices.

“The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock!,” Trump wrote in a Truth Social post.

“In other words, customers are being “gouged.” I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!,” he added.

CNBC has contacted the U.S. Department of Justice for comment and is awaiting a response.

Investors were also encouraged by signs that maritime traffic through the Strait of Hormuz could begin returning to normal.

More than 11,000 seafarers stranded in the Persian Gulf will begin exiting through the Strait of Hormuz after safety guarantees were secured, according to the International Maritime Organization. (CNBC)

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Oil prices fell 2% on Thursday to their lowest since the first trading ‌day of the Iran war, as a U.S.-Iran interim deal to end the war, reopen the Strait of Hormuz and ease sanctions on Tehran boosted the global supply outlook.

Brent crude futures were down $1.59, or 2%, at $77.96 a barrel as of 0811 GMT, while U.S. West Texas Intermediate ​fell $1.83, or 2.38%, to $74.96 a barrel.

Brent sank to its lowest since March 2, which was the first day ​of trading after the initial U.S.-Israeli strikes on Iran, while WTI was at its lowest ⁠since March 4. 

“The sell-off extended as energy markets continued to aggressively price in a faster-than-expected return of Iranian barrels ​following the recent U.S.-Iran memorandum of understanding,” IG market analyst Tony Sycamore said in a note.

The 14-point memorandum begins a 60-day ​negotiation period during which Iran will allow toll-free passage through the Strait of Hormuz, a key oil and gas shipping lane. The deal calls for traffic through the strait to be restored to its full capacity within 30 days.

The preliminary accord defers many of the more ​difficult issues, such as Iran’s nuclear program, and also requires the U.S. and its partners to come up with ​a $300 billion plan to finance Iran’s recovery.

Analysts expect a gradual recovery in flows through the Strait of Hormuz, while industry experts have ‌cautioned that ⁠prices may not plummet as demand recovers and inventories are refilled.

Investment bank Goldman Sachs expects Gulf exports to normalize to pre-war levels by end-July, with crude production recovering by October.

The bank estimates that a normalization in exports to pre-war levels might be achieved with a 13 million barrel-per-day increase in Hormuz flows from current levels to around 70% of pre-war ​levels.

“Whilst it does seem the ​worst is behind us, things ⁠are quite a long way off from being normal,” Kpler analyst Matt Stanley said, adding that the war risk premium on prices has been largely priced out.

Oil prices are ​likely to ease, but not plummet, as countries replenish reserves and as maritime traffic normalises, ​International Monetary Fund ⁠chief Kristalina Georgieva said on Thursday.

International Energy Agency chief Fatih Birol said it was important that negotiations are completed in 60 days, having previously warned that the global economy will enter a “red zone” if the Strait does not reopen by the ⁠end of ​June.

Also weighing on the oil market are ramped-up bets the U.S. Federal ​Reserve may raise interest rates later this year to rein in inflation, which could slow economic growth and suppress oil demand. (Reuters)

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Oil prices fell to their lowest level in three months Tuesday, as the U.S. will reportedly allow Iran to immediately begin selling crude under the terms of the deal to end the conflict.

Brent crude futures fell 5% to close at $78.96 per barrel, the first time the international benchmark has fallen below $80 since March. U.S. West Texas Intermediate futures lost 5.8% to settle at $76.05.

People familiar with the matter told The Wall Street Journal that oil sanctions relief for Iran will take effect immediately after the agreement is signed.

A senior U.S. official told CNBC that Iran can only access the benefits of the agreement if they abide by their commitments under the deal. These include not pursuing a nuclear weapon, neutralizing its enriched uranium and not interfering with traffic in the Strait of Hormuz, the official said.

The push to resolve the war dominated discussions at the G7 leaders summit in Évian-les-Bains, France, with further details of the memorandum of understanding expected to be released later this week. The U.S. and Iran have given conflicting accounts of what is actually in the deal.

“Nobody has seen any text, so if there’s an agreement that was reached three days ago, it is a bit odd that we haven’t seen it,” Amos Hochstein, who advised former President Joe Biden on energy, told CNBC’s “Squawk Box” on Tuesday.

Shippers cautious

Washington and Tehran had earlier reached a provisional agreement on Sunday, which would extend the U.S.-Iran ceasefire for 60 days and reopen the Strait of Hormuz to all shipping.

Arriving at the G7 meeting, President Donald Trump said the peace framework with Iran has been signed, adding that the Strait of Hormuz will “completely reopen” on Friday, free of Iranian tolls. Trump said a formal signing ceremony would take place on Friday in Geneva.

Hapag-Lloyd, the German global container shipping giant, welcomed the prospect of a peace agreement and an end to all military action in the region as “good news for us, for our crews, and for our customers.”

“We hope that our four remaining ships will be able to pass through the Strait of Hormuz this weekend,” Hapag-Lloyd said in a statement.

However, the head of the world’s largest tanker operator has suggested a more complicated path to normalizing traffic through the strait, which accounted for around 20% of the world’s oil supply before the outbreak of the war at the end of February.

Jotaro Tamura, chief executive of Mitsui OSK Lines, told the Financial Times on Tuesday that many operators could wait weeks until they allow their tankers to resume transit through the strait.

“What will have to come in place is not just a simple agreement between the relevant countries, but it has to be material and translated into the real situations in the Strait of Hormuz, so that shipping lines can make themselves comfortable to go through,” Tamura said. (CNBC)

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Crude oil prices extended losses for a second day today (06), after President Trump said the United States would pause its plan to escort vessels out of the Strait of Hormuz just a couple of days after it was announced.

The news prompted expectations that a peace deal may be in the making, pressuring Brent crude below $107 and West Texas Intermediate tumbling to under $100. At the time of writing, Brent crude was trading at 106.50 per barrel, and WTI was changing hands for $98.55 per barrel.

“We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom … will be paused for a short period of time to see whether or not the Agreement can be finalised and signed,” the U.S. president wrote on social media.

Earlier in the week, the U.S. Central Command reported two destroyers had escorted two U.S. merchant vessels out of the Strait of Hormuz. Iran’s reaction was swift, with the country’s army threatening strikes on U.S. military vessels in the area. Iran said it had fired warning shots at one U.S. warship. The U.S. Central Command denied the report.

Oil prices were under pressure following Trump’s original announcement, but then started to climb after Iran made clear that it would attack any forces that approached the Strait. Then, after Trump’s latest social media announcement, prices began to deflate, even though there have been no concrete steps towards a peace agreement.

Instead, U.S. Secretary of State Marco Rubio asked the United Nations to intervene and “call on Iran to stop blowing up ships, remove the mines, and allow humanitarian relief. If the international community can’t rally behind this and solve something so straightforward, then I don’t know what the utility of the UN system is.” (Oil Price)

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Oil prices are largely unmoved following United States President Donald Trump’s announcement that the US will guide stranded vessels out of the Strait of Hormuz.

Brent crude, the international benchmark, was essentially flat on Monday morning, as traders saw little hope of Trump’s plans resolving the biggest energy disruption in history.

Brent futures for July stood at $108.11 as of 05:00 GMT, down 0.06 percent.

Trump said on Sunday that the US would “help free up” vessels stranded in the Gulf from Monday, but offered few details on how the operation, dubbed “Project Freedom”, would work.

Trump did not specify whether the plan would involve escorts by the US Navy, a proposal previously shot down by administration officials, who cited the need to make further preparations for such operations.

US Central Command said in a later statement that it would “support” vessels seeking to transit the waterway, without making any reference to naval escorts.

The command said that guided-missile destroyers, more than 100 land- and sea-based aircraft, multi-domain unmanned platforms, and 15,000 service members would be involved in supporting the effort.

Senior Iranian officials have signalled that Tehran will not cooperate with Trump’s plan, casting further uncertainty over the fragile ceasefire in place between the sides since April 7.

Ebrahim Azizi, the head of the Iranian parliament’s National Security Commission, on Sunday warned that any “American interference” in the strait would be considered a breach of their truce.

On Monday, the United Kingdom’s military said it had received reports of a tanker being struck by “unknown projectiles” off the coast of the United Arab Emirates, hours after a bulk carrier reported being attacked by multiple small craft off Iran. 

Neither of the crews involved in the incidents was harmed, according to UK Maritime Trade Operations (UKMTO).

Goldman Sachs estimates that the closure of the waterway, which normally carries one-fifth of the world’s oil supplies, and attacks on energy infrastructure have reduced global daily production by 14.5 million barrels.

Brent is up nearly 50 percent since the start of the war, and has not dropped below $100 a barrel for nearly two weeks.

Analysts have warned that prices are likely to remain elevated for some time after any peace deal is reached between Washington and Tehran due to the backlog of unloaded energy supplies, damaged infrastructure, and the need to clear Iranian mines.

Only 20 vessels crossed the strait on Wednesday, the most recent day for which figures were available, according to ship tracking data monitored by maritime intelligence platform Windward.

The strait saw an average of 129 daily transits before the US and Israel launched their war on Iran in late February, according to the United Nations Trade and Development (UNCTAD) agency. (Al Jazeera)

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Oil prices soared more than 6 per cent on worries about prolonged supply disruption in the Strait of Hormuz and fears of a lengthy US siege of Iranian ports, settling at their highest levels in weeks.

US crude settled up 6.95 per cent at $106.88 per barrel on Wednesday, and Brent crude, the international benchmark, was up 6.08 per cent, or $6.77, at $118.03 after earlier touching its highest price since June 2022, the Reuters news agency reports.

Brent crude futures for June continued to rise on Thursday to $119.94 per barrel as of 00:57 GMT, and US West Texas Intermediate futures were at $107.51, Reuters said.

Oil prices continue to surge with no resolution in sight to the two-month-long US-Israel war on Iran, and as supplies of fuel remain snarled in the Strait of Hormuz, where Iranian forces have imposed a blockade on the transit of vessels and the US is besieging Iranian ports and shipping.

A White House official said on Wednesday that US President Donald Trump had asked US oil companies about ways to mitigate the impact of a potentially months-long siege of Iranian ports.

The president and the oil executives “discussed the steps President Trump has taken to ⁠alleviate global oil markets and steps we could take to continue the current blockade for months if needed and minimize impact on American consumers,” the White House official said.

News of Trump’s talks with oil executives triggered concerns in the market of an extended disruption to oil supplies, Reuters reports, and came as the Pentagon revealed for the first time that the war on Iran has cost the US military $25bn so far. (Al Jazeera)

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Oil prices climbed on Monday after plans for a second round of peace negotiations between the U.S. and Iran unravelled again.

Iran’s Revolutionary Guard also reportedly boarded two cargo ships near the Strait of Hormuz as tensions in the strategic sea lane remain high.

International benchmark Brent oil futures rose over 1% to $106.56 per barrel by 12.44 a.m. ET. U.S. crude oil also added 0.9% to $95.25.

President Donald Trump on Saturday cancelled plans to send U.S. envoy Steve Witkoff and Jared Kushner to Islamabad, Pakistan, for negotiations with Iran.

“Too much time wasted on travelling, too much work! Besides which, there is tremendous infighting and confusion within their ‘leadership,’” Trump wrote in a post on Truth Social.

“Nobody knows who is in charge, including them,” the president said. “Also, we have all the cards; they have none! If they want to talk, all they have to do is call!!!”

Iranian Foreign Minister Abbas Araghchi travelled to Islamabad over the weekend but met only with Pakistani officials before leaving.

“No meeting is planned to take place between Iran and the U.S.,”  Iran’s Foreign Ministry spokesperson Esmaeil Baqaei said in a social media post late Friday. (CNBC)

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Oil prices have jumped on heightened tensions between the United States and Iran in the Strait of Hormuz following Washington and Tehran’s tit-for-tat captures of commercial vessels.

Brent crude, the international benchmark, topped $106 per barrel early on Friday morning as Washington and Tehran stepped up their confrontation over the key maritime route for transporting the world’s energy.

Brent stood at $106.80 as of 01:00 GMT, up nearly 5 per cent from its closing price on Wednesday, when it surpassed $100 per barrel for the first time in two weeks.

US stocks fell overnight, with the benchmark S&P 500 index dipping 0.41 per cent and the tech-heavy Nasdaq Composite dropping 0.89 per cent.

Shipping in the Strait of Hormuz, which normally carries about one-fifth of the world’s supply of oil and natural gas, remains at a standstill as Iran continues to demand the right to decide which vessels may pass and the US blocks Iran’s maritime trade.

US President Donald Trump said in a Truth Social post on Thursday that he had ordered the US Navy to destroy any Iranian boats laying mines in the strait, shortly after the Pentagon announced that it had seized a tanker carrying sanctioned Iranian oil for the second time in less than a week.

Trump also appeared to expand the scope of the US naval blockade beyond Iranian ports, writing on Truth Social that no ship “can enter or leave” the strait without the approval of the US Navy.

“It is ‘Sealed up Tight,’ until such time as Iran is able to make a DEAL!!!” Trump said

Trump’s threats came a day after Iran’s Islamic Revolutionary Guard Corps announced the capture of two foreign cargo ships in the waterway.

The IRGC said it had seized the Panamanian-flagged MSC Francesca and Greek-owned Epaminondas after the vessels had endangered maritime security “by operating without the necessary permits and tampering with navigation systems”.

The Greek Maritime Affairs and Insular Policy Ministry has denied that the Epaminondas was captured and said the vessel remains under the control of its captain.

Only nine commercial vessels transited the strait on Wednesday, compared with seven on Tuesday and 15 on Monday, according to maritime intelligence platform Windward.

Before the US and Israel launched their war against Iran on February 28, the waterway saw an average of 129 transits each day, according to the United Nations Trade and Development. (Al Jazeera)

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Oil prices edged lower on Wednesday as uncertainty lingered over the trajectory of the U.S.–Iran conflict, after President Donald Trump extended a fragile ceasefire with Tehran but signalled tensions remain far from resolved.

International benchmark Brent crude and U.S. West Texas Intermediate futures both slid, with Brent declining 0.68% to $97.81 per barrel while the WTI lost 0.29% to $89.04 per barrel.

The moves come after Trump said the U.S. would prolong its temporary truce with Iran beyond the previously set deadline, citing a “seriously fractured” political situation within Tehran.

The ceasefire will remain in place until Iranian leaders present a unified proposal to end hostilities with Washington and Israel, he said in a post on Truth Social. In the meantime, the U.S. would continue its blockade of Iran’s ports.

The ceasefire extension underscores the uncertain path toward de-escalation. 

While the move delays the risk of imminent military strikes, it also highlights deep divisions within Iran’s leadership and the lack of a clear diplomatic breakthrough.

Earlier on Tuesday, oil prices rose after it became clear that Vice President JD Vance had not departed for Pakistan, where peace talks with Iran were supposed to resume.

However, Iranian state news outlet Tasnim reported that negotiators from Tehran had informed their U.S. counterparts through an intermediary in Pakistan that they would not appear for further talks.

“Iran ultimately announced today that under these circumstances, attending the negotiations is a waste of time because the US prevents reaching any suitable agreement,” Tasnim reported. (CNBC)

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Oil prices have risen sharply following attacks on commercial vessels in the Strait of Hormuz and conflicting messages about the prospect of renewed negotiations between the United States and Iran.

Brent crude futures, the primary benchmark for global prices, jumped more than 7 percent in Asia on Monday as the outlook for peace between Washington and Tehran darkened.

Prices eased somewhat later in the morning, with the benchmark at $94.69 a barrel as of 02:05 GMT, up from just under $90.40 on Friday.

The latest price surge came after US President Donald Trump said US forces seized an Iranian-flagged cargo vessel that had attempted to evade the US blockade of Iran’s ports.

Trump’s announcement followed reports by the United Kingdom Maritime Trade Operations (UKMTO) Centre over the weekend that two vessels came under attack while transiting the strait.

Iranian gunboats fired on a tanker, while an “unknown projectile” struck a container ship, according to the UKMTO.

After declaring the strait “completely open” on Friday, Tehran reversed course less than 24 hours later, citing the ongoing US blockade.

Earlier on Sunday, Trump said that a US delegation would travel to Pakistan on Monday to hold a second round of ceasefire talks with Iranian officials.

Iranian state news outlet IRNA later reported that Tehran would not participate in the talks, citing the US blockade and Washington’s “excessive demands” and “unrealistic expectations”.

A two-week ceasefire between Washington and Tehran is set to expire on Wednesday if the sides cannot agree on an extension.

An initial round of talks held in Islamabad earlier this month broke down without any agreement between the sides.

Iran’s effective closure of the strait, which usually carries about one-fifth of global oil and natural gas supplies, has driven a surge in fuel prices worldwide, forcing governments to tap emergency supplies and roll out energy-saving measures.

Nineteen vessels crossed the strait on Saturday, up from 10 the previous day, but far below the historical average of 138 daily transits, according to the UKMTO.

Asia’s main stock markets opened higher on Monday despite the dimming prospects of de-escalation.

Japan’s Nikkei 225 rose more than 1 percent in morning trading, while South Korea’s KOSPI gained about 1.3 percent.

Hong Kong’s Hang Seng Index rose about 0.5 percent, while the SSE Composite Index in Shanghai gained more than 0.4 percent. (Al Jazeera)

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Sri Lanka may have purchased oil at around $286 per barrel amid the Middle East conflict, according to HSBC Chief Georges Elhedery, who said oil prices can be significantly higher than Brent crude benchmarks in Asia when insurance, shipping, and supply scarcity are taken into account.

According to a report by the Middle East Eye, speaking at an investment forum in Hong Kong on Tuesday, Elhedery highlighted how benchmark oil prices in the West fail to reflect the actual costs faced by buyers in parts of Asia.

“What worries me is not the headlines. Oil headline is above $100, $110,” he said, according to a transcript obtained by Bloomberg. “Realistically, if you are now trying to get oil from the Middle East, you may be paying $140, $150.” He added that the highest figure he had heard was $286 in Sri Lanka.

The disparity stems from the ongoing U.S.–Israeli war on Iran, which has disrupted global energy flows. Iran has taken control of the Strait of Hormuz, blocking Gulf exports, while the U.S. has responded with its own blockade against Iranian oil. As a result, exports through the Strait have slowed to a trickle.

Saudi Arabia has emerged as the region’s top exporter, sending roughly five million barrels per day from its Red Sea port of Yanbu. Yet even the Omani benchmark, trading at around $100 per barrel, does not capture the full burden on Asian buyers.

Shipping rates have surged, with costs from the Red Sea adding $30–40 per barrel, while insurance premiums have jumped from 0.25 per cent to 5 per cent.

The crisis has left countries like Sri Lanka facing extreme price shocks, underscoring the vulnerability of smaller economies to geopolitical conflicts. 

Iran has further warned it could close the Red Sea unless the U.S. lifts its blockade, raising fears of deeper disruptions to global energy supply.

Full report:  https://www.middleeasteye.net/news/sri-lanka-buyer-paid-286-barrel-oil-actual-prices-world-diverge-markets (Newswire/ Middle East Eye) 

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