Oil prices rise as U.S.-Iran talks stall, Hormuz traffic slows

Oil prices rose on Monday, August 17, as stalled U.S.-Iran peace talks and reduced tanker traffic through the Strait of Hormuz renewed concerns about crude supplies from the Middle East.

Brent crude futures rose as much as 1% to $89.40 a barrel, while U.S. West Texas Intermediate (WTI) crude climbed to $82.83 a barrel.

The two benchmarks gained more than 5% last week, supported by heightened geopolitical risks and attacks involving oil infrastructure and tankers in the region.

Iranian Foreign Minister Abbas Araqchi said no decision had been made on resuming negotiations with the United States, adding to uncertainty over prospects for a settlement and the restoration of normal shipping through the Strait of Hormuz.

Tanker traffic through the strategic waterway has fallen sharply. Five vessels passed through the strait on Saturday and none on Sunday, compared with 31 vessels during the previous weekend.

The Strait of Hormuz is one of the world’s most important energy routes, and disruptions to shipping through the waterway have kept a geopolitical risk premium in oil prices.

Despite the tensions, oil’s gains remained relatively contained as traders weighed supply risks against concerns over global demand and available inventories.
 

N.Tebrizli