Hormuz Tensions Weigh on Markets, Oil Climbs Above $80

Global oil markets posted moderate gains on Thursday as investors closely monitored the situation in the Strait of Hormuz and the possibility of an agreement to reopen it.

Brent crude, the main international benchmark, rose by around 1.2% and traded near $80 a barrel. Meanwhile, US West Texas Intermediate advanced by approximately 1%, reaching around $76 a barrel.

The increase followed announcements by Iran that it is in the final stages of reaching an agreement with Oman concerning the passage of ships through the Strait of Hormuz. However, Iranian authorities stressed that such a development would not necessarily mean the waterway would fully reopen.

Before the conflict escalated, around 20% of the world’s oil was transported through the Strait of Hormuz, making it one of the world’s most strategically important energy corridors.

Another source of uncertainty for international markets is the involvement of the Houthi rebels in the conflict. The Yemen-based group claimed responsibility for an attack on a Saudi oil tanker in the Gulf of Aden, near the Bab al-Mandeb Strait, another strategically important maritime passage.

According to Deutsche Bank analysts, markets have faced several signals during the crisis that later proved false. As a result, attention has now shifted to how any potential agreement would be implemented in practice and the conditions attached to it.