Crude tops $92 as Iran-Oman Strait of Hormuz deal nears
Crude rose above $92 a barrel to a three-month high after Iran said an agreement with Oman to manage Strait of Hormuz shipping was nearing completion. Markets also weighed potential US response after tanker strikes over the weekend.
Crude oil rose above $92 per barrel on Tuesday, reaching a three-month high after Iran said an agreement with Oman to manage shipping through the Strait of Hormuz was nearing completion. The move heightened market concern about Tehran’s growing control of the key waterway. Investors were also watching for how the US might respond after striking Iranian tankers in the strait over the weekend. Oil prices surged nearly 10% last week as renewed US-Iran fighting increased fears of further disruptions to energy supplies from the Middle East.
Both sides stepped up attacks over the weekend, targeting ships and military vessels around Hormuz. Saudi Aramco’s facilities in Jazan near the Red Sea were attacked again on Monday, although the damage was limited. Despite the elevated risks, oil continues to move out of the Persian Gulf, with roughly 7 million barrels a day of crude and refined products reportedly passing through the Strait of Hormuz.