Oil price today: Brent rises 1% as Middle East conflict continues Hormuz shipping disruption
Oil prices inched higher on Friday as traders turned cautious due to uncertainty over shipping through the Strait of Hormuz alongside US President Donald Trump's recent remarks that the war could end "pretty soon."Around 7:25 am IST, Brent crude was trading 84 cents, or 1.02% higher, at $83.33 a barrel, while US West Texas Intermediate (WTI) crude was up 69 cents, or 0.89%, to $77.98 a barrel.The gains extended Thursday's rally, when crude settled more than $3 a barrel higher after Iran reviewed legislation aimed at preventing US and Israeli vessels from using the Strait of Hormuz.
Before the war began at the end of February, the route carried around one-fifth of the world's oil and liquefied natural gas shipments.Trump said he believed the conflict involving Iran would come to an end soon, claiming that Tehran was unlikely to be able to continue fighting for much longer. Speaking from the Oval Office in Washington, Trump said, "I think the war’s got to end pretty soon.
I don’t think they can go much longer."Meanwhile, Iran and Oman also discussed new transit proposals, while Tehran continued to pursue measures targeting vessels it considers hostile, Reuters reported.The market's latest move marks a reversal from earlier this week, when prices had retreated as expectations grew that the conflict could move towards a resolution.
Brent, which had dropped below the $80-a-barrel mark for the first time since July 13, recovered to trade above that level on Thursday.The latest concerns stem from proposals linked to shipping through the strait. Iran, in coordination with Oman, has suggested barring vessels it considers hostile from the waterway and imposing substantial penalties on those found to be breaching the proposed rules.Separately, an Iranian lawmaker said a parliamentary committee is considering a preliminary bill that would prohibit US, Israeli and other vessels classified as hostile from transiting the Strait of Hormuz.
According to Fars news agency, ships violating the proposed restrictions could face fines of up to 20% of the value of their cargo.Tehran is also seeking transit fees of between 5% and 7% of cargo value for ships using the strait, according to a senior Iranian official. Oman is discussing fees of about 3%, while Washington wants no charges to be levied."Markets have already seen at least one short-lived arrangement earlier this year, so confidence that a new pact would fully restore normal tanker movements remains low," Tim Waterer, chief market analyst at KCM Trade told Reuters.Despite the proposals, four industry sources said the arrangement would be difficult to implement because of US sanctions and insurance restrictions affecting any payments.Elsewhere, Yemen's Houthis said they carried out missile and drone attacks on "Saudi deployments" in Marib and Hadramout on Thursday.Even as oil prices continue to inch higher, they remain well below the earlier levels of $125 per barrel.Get the latest Business News and Live updates.
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