Global oil prices rose slightly on Thursday as traders exercised caution over reported deal to reopen the Strait of Hormuz after a series of “false dawns.”
The price of Brent crude, the global oil benchmark, was up 1.2% close to 7 a.m. ET to trade at $80 a barrel. WTI, the US benchmark, rose 1% to $76 a barrel around the same time.
Iran said it is finalizing a deal with Oman for the transit of vessels through the Strait of Hormuz, but officials in Tehran have warned that would not necessarily mean a reopening of the strait, through which 20% of the world’s oil travelled pre-war.
There are also growing concerns over the role of Iran-backed Houthi rebels in the conflict. On Wednesday, the group, based in Yemen, claimed responsibility for an attack on a Saudi oil tanker in the Gulf of Aden, close to the Bab al-Mandeb strait at the base of the Red Sea.
“Markets have seen plenty of false dawns throughout this conflict,” Deutsche Bank analysts wrote in a note on Thursday.
“Attention is now shifting from whether an agreement can be reached to what the final arrangements will look like,” including whether Iran will implement a tolling system for vessels, the analysts noted.
Source: CNN
