Crude oil prices eased in Thursday’s trade (July 30) as investors weighed ongoing talks between Iran and Oman over reopening the Strait of Hormuz, even as the United States launched fresh strikes on Iran. Brent crude slipped below $90 a barrel after surging 7.9% in the previous session.
US benchmark WTI crude also slipped below $83 a barrel, giving up part of its 6.5% gain from the previous session.
The decline followed reports that talks between Iran and Oman over the management of the Strait of Hormuz are continuing, according to Reuters, citing the Iranian Labour News Agency.
Iran’s Deputy Foreign Minister Saeed Gharibabadi said on Thursday that Tehran had proposed a joint arrangement under which Iran and Oman would oversee shipping transit through the strategic waterway.
Under the proposal, Iran would manage shipping traffic in one direction through the Strait of Hormuz, while Oman would oversee transit in the opposite direction.
The latest proposal comes after Iran reportedly rejected Oman’s earlier plan for a 50-50 joint management arrangement, insisting that Tehran retain full control over the inbound shipping lane and part of the outbound route.
Since the conflict erupted, market attention has remained firmly focused on the Strait of Hormuz, through which nearly 20% of the world’s seaborne oil trade passes.
Although tanker traffic briefly resumed after last month’s interim agreement, allowing Iranian crude exports to return to global markets, the latest flare-up has once again raised concerns over the security of the vital shipping lane and the potential for fresh supply disruptions.
Meanwhile, Yemen’s Houthi group is reportedly considering imposing transit fees on commercial vessels sailing through the southern Red Sea, a week after declaring a naval blockade on Saudi Arabia, Reuters reported, citing regional sources familiar with the matter.
The Bab el-Mandeb Strait in the Red Sea is another critical chokepoint for global energy trade, serving as a key export route for Saudi crude diverted from the Strait of Hormuz.
In another blow to global oil supplies, tankers scheduled to load at the Caspian Pipeline Consortium (CPC) terminal are moving away from the Black Sea after a vessel was hit during loading on Thursday, Reuters reported, citing shipping data and industry sources.
US launches fresh strikes on Iran
Meanwhile, geopolitical tensions remained elevated after US forces reportedly carried out fresh strikes on Iran on Thursday in response to attacks on American forces across the Middle East. In response, Iran’s Islamic Revolutionary Guard Corps (IRGC) threatened further escalation.
The IRGC also said it maintains “full control” of the Strait of Hormuz and warned that “a stranger who has come from thousands of kilometres away will not be allowed to interfere.”
The latest strikes came just hours after US President Donald Trump vowed to hit Iran “very hard” following attacks on a military base in Jordan hosting US troops.’
(With inputs from Reuters)
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