Oil prices rose on Friday morning as fears of an escalation in Middle East tensions mounted after Iran announced it would block the passage of vessels from the United States, Israel, and other countries through the Strait of Hormuz. Investors are closely watching for potential retaliation from Washington.
Brent crude — the European benchmark — was trading at $83.40 per barrel, up 1.11%, while West Texas Intermediate (WTI) stood at $77.93 per barrel, a gain of 0.82%. Despite the intraday advance, oil remains roughly 5% lower on the week, having pulled back earlier on expectations of a diplomatic agreement between the US and Iran.
“The overnight recovery in oil serves as a reminder that the energy shock has not been fully resolved,” said Christopher Wong, a currency strategist at OCBC, as quoted by Bloomberg.
An agreement between Iran and Oman, cited by the Fars news agency, would allow free navigation through the Strait of Hormuz, but only once countries and individuals deemed to have caused harm to Tehran have compensated Iran accordingly. Vessels that violate the restrictions would be subject to an additional levy of 20% on the value of the cargo carried, with Fars reporting “severe sanctions” against those who fail to comply with the imposed blockade.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=528337
