Oil markets showed renewed unease on Thursday after reports emerged that Iran had proposed a deal granting it control over vessel transit through the Strait of Hormuz, according to Ship & Bunker. The development came even as U.S. officials pointed to “good signs” in ongoing peace talks between Washington and Tehran.
As of 0755 GMT, Brent crude rose 48 cents to $79.93 per barrel, while West Texas Intermediate gained 29 cents to $75.51 per barrel, Ship & Bunker reported. Despite the uptick, both benchmarks remained roughly 8 percent lower for the week.
Talks Yield Little Substance, Say Traders
According to Ship & Bunker, traders largely dismissed U.S. Secretary of State Marco Rubio’s comments about “some good signs” in negotiations, judging any progress to involve only minor issues. Iran has continued to insist on maintaining control over the Strait of Hormuz and has stated it will keep developing nuclear weapons capabilities unless the U.S. and Israel disarm their own nuclear stockpiles, the report noted.
Tim Waterer, chief market analyst at KCM Trade, was quoted by Ship & Bunker as saying, “Traders still remember the short-lived Memorandum of Understanding signed in June, so there is understandable anxiety that any new deal could prove equally fragile.”
Proposed Iran-Oman Deal Raises Concerns
Ship & Bunker cited PVM Oil Associates analyst Tamas Varga, who pointed to severely depleting global oil inventories as flows through the Hormuz slowed to a trickle. Adding to market anxiety, a proposed agreement between Iran and Oman would reportedly give Tehran authority over ships transiting the waterway, according to CNBC, as referenced by Ship & Bunker.
Under the plan, Iran would ban U.S. and Israeli vessels from the Strait entirely, while other nations allied with those countries would be required to pay compensation for passage. Violators of the proposed rules would face penalties equal to 20 percent of the value of cargo aboard their vessels, Ship & Bunker reported, citing CNBC.
Despite the tensions, Saudi Aramco announced it would lower its September official selling price for Arab Light by 50 cents per barrel, placing it at a $2 discount to the regional benchmark. Ship & Bunker reported that the move was driven by hopes of increased tanker traffic through the Strait.
Separately, Ship & Bunker noted that a Saudi Arabia-flagged oil tanker was reportedly struck by Houthi ballistic missiles in the Red Sea, halting vessel traffic at the Bab el-Mandeb strait.
Does This Matter to You?
Developments around the Strait of Hormuz carry direct implications for vessel routing, freight costs, and bunker fuel availability, given the waterway’s role as a critical chokepoint for global oil and shipping traffic. Any disruption to transit rights or new compensation schemes could affect voyage planning and costs for vessels moving through the region.
The parallel incident in the Red Sea, where Houthi forces claimed responsibility for striking a tanker, adds further uncertainty for vessels transiting the Bab el-Mandeb strait, a route already affected by ongoing regional tensions.
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
