Oil prices rise amid Strait of Hormuz tensions

Oil prices have seen a slight increase as tensions persist regarding the reopening of the Strait of Hormuz. Iran has indicated that a potential agreement with Oman for managing the vital waterway would be insufficient without meeting specific demands from the United States. Tehran is calling for an end to attacks and the blockade of Iranian ports, the removal of sanctions, the unfreezing of Iranian assets, and compensation for war-related damages.

Brent crude rose by 0.6% to $84.03 per barrel, while WTI increased by 0.4% to $78.49 per barrel. The hardening stance from Tehran may delay the full restoration of vessel traffic through the Strait, which previously accounted for one-fifth of the global oil supply.

Simultaneously, Saudi Arabian oil exports through the Red Sea and the Bab el-Mandeb strait face threats from Houthi militia attacks. The Houthi group, supported by Iran, recently targeted a major Saudi oil refinery on the Red Sea coast, complicating the use of this corridor as an alternative to the Strait of Hormuz.