Now Reading: Brent crude nears $85 as Strait of Hormuz reopening stalls
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Brent crude nears $85 as Strait of Hormuz reopening stalls
Brent crude rose 1.09% to $84.46 a barrel on Monday, after losing more than 7% last week, as uncertainty over the reopening of the Strait of Hormuz persists. Iran confirmed a deal…
The Story in Brief
Brent crude rose 1.09% to $84.46 a barrel on Monday, after losing more than 7% last week, as uncertainty over the reopening of the Strait of Hormuz persists. Iran confirmed a deal with Oman defining new shipping lanes was in its final stages, the Mehr news agency reported, but Tehran insists the US must first meet conditions including compensation and an end to sanctions. Messages are being exchanged via intermediaries; direct US-Iran talks are not happening, Times of India reports.
Separately, Houthi rebels attacked Saudi Aramco's Jazan refinery, causing a fire that was quickly extinguished. Indian retail fuel prices remained unchanged on Monday, state-run OMCs said, holding steady since a revision in May. Traders remain cautious, with KCM Trade's Tim Waterer noting they await tangible evidence of a deal before reducing the risk premium.
The Indian Opinion
The narrative that a quick Iran-Oman deal will crash oil prices ignores the hard reality: Tehran wants US concessions that Washington has not granted. The Houthi attack on Saudi refinery shows other chokepoints remain fragile. And while Indian consumers see steady petrol prices, the government may be absorbing costs, watch for OMCs to revise rates upward if crude stays above $85 for more than a fortnight. The real test is whether verified tanker movements through Hormuz resume before any formal agreement is signed.
Sources (3): ndtvprofit.com, timesofindia.indiatimes.com, livemint.com
This story was synthesised by AI from the 3 sources linked above.
