Oil prices are rising amid Iran’s demands to open the Strait of Hormuz
10 August 04:17
Oil futures rose 1.2% on Sunday, August 9, after Tehran stated that it was not negotiating with the United States and presented a list of demands regarding the reopening of the Strait of Hormuz, according to "Komersant Ukrainian", citing CNN.
The price of Brent crude, the international benchmark, rose by about 1.2% to $84.58 per barrel, while the price of U.S. crude rose by about 1.1% to $79.28 per barrel.
On Sunday, President Donald Trump stated that the U.S. is conducting “restrained” negotiations with Iran.
Tehran is demanding that the U.S. cease attacks on Iran and its regional allies, lift the blockade of Iranian ports, withdraw U.S. military forces from Iran, lift U.S. sanctions, unfreeze Iranian assets, and compensate for war damages.
Oil tankers have largely been unable to pass through the Strait of Hormuz since Iran closed this critical waterway following the resumption of hostilities in July. The renewed tensions have effectively derailed the ceasefire agreement signed in June, which called for the reopening of the strait, through which about 20% of the world’s oil passes.
Tehran is negotiating with Oman to approve safe passage through the strait, but has warned that this does not mean the waterway will be reopened.
The disruption to oil supplies is exacerbated by the fact that the Iran-backed Houthis are effectively blocking the Bab el-Mandeb Strait, which connects the Gulf of Aden and the Indian Ocean to the Red Sea. Houthi rebels have also attacked a Saudi oil refinery on the Red Sea coast.
Gas prices in the U.S. remain higher, as they follow the trend set by oil prices. The national average price per gallon of gasoline on Sunday was $4.01, down eight cents from a week ago but 34.6% higher than before the war began.
Meanwhile, stock futures opened unchanged.
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