Lates News

On Monday, supported by the uncertain prospects of the reopening of the Strait of Hormuz and the ongoing tension in the Middle East, both WTI and Brent crude futures continued to rise in the U.S. market. Iran reiterated several conditions before agreeing to fully reopen the strait. According to Al Jazeera, the conditions proposed by the Secretary of Iran's Supreme National Security Council, Zarif, include: ending the U.S. maritime blockade, and the withdrawal of the U.S. Navy and Air Force from around Iran. Tehran also demands compensation for damages caused by recent conflicts, the lifting of sanctions, and the unconditional unfreezing of Iranian assets. These demands currently diminish the likelihood of a rapid return to normal shipping and contribute to maintaining risk premiums in WTI prices. Meanwhile, negotiations with Oman regarding the establishment of a secure shipping route through the Strait of Hormuz appear to be making progress. However, due to the failure to reach a comprehensive reopening agreement, investors remain cautious about the risks of long-term disruptions to oil supply. Regional tensions are not limited to the Strait of Hormuz. The Iran-backed Houthi forces in Yemen claimed to have launched a drone attack on Saudi Aramco's refinery. The latest attacks on major energy infrastructure have heightened market concerns regarding the security of regional oil supplies.