Oil markets extended their sharp decline on Tuesday, with prices falling roughly 5 percent as investors grew increasingly hopeful that a de-escalation between the United States and Iran could hold, according to Ship & Bunker.
As of 1601 GMT, Brent crude dropped $4.61, or 5.2 percent, to $83.75 per barrel, while West Texas Intermediate fell $4.06, or 4.9 percent, to $78.55 per barrel. Ship & Bunker reports that both benchmarks have now fallen approximately 17 percent over the past three trading days.
Israel Restrained From Striking Iranian Energy Sites
According to Ship & Bunker, Israeli defense minister Israel Katz told media that U.S. President Donald Trump was actively preventing Israel from targeting Iran’s energy infrastructure. Katz reportedly said the United States was withholding approval due to fears that Iran could retaliate against neighboring countries, potentially triggering a wider oil crisis. Katz added, “as far as we’re concerned, we’re prepared to set [Iran] back 40 years,” Ship & Bunker reports.
Oman Proposes Hormuz Fee Plan
Further boosting market optimism, a Gulf source and a Western diplomat told media, as cited by Ship & Bunker, that Oman had submitted a proposal to Iran—backed by Gulf states—aimed at managing transit through the Strait of Hormuz. The plan reportedly includes the collection of voluntary fees for vessels using the strait.
Adding to the more positive tone, Trump himself described “good talks” as underway with Iran, although Ship & Bunker notes that Iran denied seeking to restart negotiations with Washington.
Goldman Sachs Weighs In
Goldman Sachs said in a note cited by Ship & Bunker that if the Strait of Hormuz fully reopens by the fourth quarter of this year, Brent crude could settle around $80 per barrel by year-end. However, the bank cautioned that “Red Sea disruptions and attacks on Saudi oil infrastructure may pose a new source of upside risk for crude and refined products prices.”
Houthi Strikes Continue to Disrupt Saudi Refining
Separately, Ship & Bunker reports that a weekend attack by Iran-backed Houthi forces damaged Saudi Aramco’s 400,000-barrel-per-day Jazan refinery, forcing its closure, with repairs tentatively expected by mid-August. The Houthis also struck Aramco facilities in Yanbu. Oilprice.com analyst Julianne Geiger, as quoted by Ship & Bunker, noted that “a Houthi strike on Yanbu suggests the war may now be following the workaround west”—referring to Saudi Arabia’s use of the Red Sea port to move crude around the Strait of Hormuz.
Does This Matter to You?
Developments around the Strait of Hormuz and Red Sea shipping routes carry direct relevance for vessel operators, bunker traders, and charterers monitoring transit risk and fuel cost volatility in the Middle East. A voluntary fee structure for Hormuz transits, if implemented, could introduce new cost considerations for vessels moving through the strait. Continued Houthi attacks on Saudi refining and export infrastructure also underscore ongoing operational risk along alternative routes such as the Red Sea and Yanbu corridor, which Saudi Arabia has used to bypass Hormuz. The source material does not provide further detail on how or when any Hormuz fee mechanism might be enforced, so the direct operational impact remains unclear at this stage.
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
