Crude oil prices extended their losing streak on Wednesday, as market participants appeared to dismiss Iran’s warnings of retaliation against newly imposed U.S. sanctions, according to Ship & Bunker.
Brent crude fell 3 percent to nearly $86 per barrel, while West Texas Intermediate dropped 2.8 percent to $80 per barrel, marking a third consecutive session of declines, Ship & Bunker reported.
Iran-Oman Plan Under Scrutiny
Traders were reportedly in “wait and see mode” regarding a joint Iran-Oman proposal aimed at reopening the Strait of Hormuz through a temporary shipping corridor, according to the report. The plan would involve clearing mines from the strait but would also close a UN-authorized southern route along Oman’s coastline that Iran has previously opposed.
However, Ship & Bunker noted that the credibility of the Iran-Oman plan is in question, as Washington has repeatedly stated that U.S. forces already cleared or detonated all mines in the strait. U.S. President Donald Trump reportedly said “every square inch” of the waterway is now being monitored.
Market Sentiment Diverges From Iran’s Threats
Despite Iran’s vow to retaliate against sanctions imposed earlier in the week, oil prices continued their downward trend, according to Ship & Bunker. Tim Waterer, chief market analyst at KCM, was quoted in the report stating that “Iran still retains the ability to respond by disrupting shipping, which continues to keep a residual premium in the oil price.”
Data from Kpler, cited by Ship & Bunker, showed that strait crossings remain subdued, with only five vessels transiting on the most recent session, down from seven on Monday and nine on Sunday. Separately, Crux Investor analyst Ryan Charles was referenced as noting that traders appear to be overlooking the fact that supply-side offsets are nearly exhausted.
Adding to the mixed signals, Ship & Bunker reported that Washington is preparing to send diplomats back to Middle East embassies evacuated during the prior conflict with Iran, a move some interpreted as reducing the likelihood of renewed military action.
In related market news, Sumit Ritolia of Kpler told media, as cited in the report, that India’s imports of Russian crude are expected to fall to around 2 million barrels per day this month, down from a record 2.8 million bpd in July. The decline was linked to Ukrainian strikes on Russian oil infrastructure and increased Chinese purchases of discounted Russian crude.
Does This Matter to You?
Developments around the Strait of Hormuz continue to carry weight for vessel routing decisions, freight costs, and bunker fuel pricing across the region. Reduced strait transits, as noted by Kpler in the report, may signal ongoing caution among shipowners and charterers navigating the waterway.
Fluctuations in crude benchmarks such as Brent and WTI can also influence bunker fuel cost trends over time, making this an area worth monitoring for those managing fuel procurement or voyage planning through the Middle East Gulf region.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
