Brent crude tops $80 per barrel as Hormuz talks, tanker attacks keep supply risks high

Oil prices rose on Thursday as investors cautiously monitored Iran-Oman talks for signs of restored shipping through the Strait of Hormuz. Reports of attacks on Saudi tankers in the Red Sea and Gulf of Aden also renewed concerns about supply disruptions, Reuters reported.

Brent crude futures climbed 83 cents, or 1.04%, to $80.28 a barrel by 11:58 GMT, while US West Texas Intermediate crude gained 61 cents, or 0.81%, to $75.83.

"Traders still remember the short-lived Memorandum of Understanding signed in June, ‌so there is ⁠understandable anxiety ⁠that any new deal could prove equally fragile," said Tim Waterer, chief market analyst at KCM Trade, according to Reuters.


Iran and Oman have agreed on the geographic coordinates of a shipping route through the Strait of Hormuz and are finalising a joint announcement, provided there is no interference from third parties, Iranian Foreign Ministry spokesperson Esmaeil Baghaei said on Wednesday.

Under a proposed Iran-Oman deal intended to support efforts to end the US-Iran conflict, Tehran would gain authority over ships entering the Gulf via the Strait of Hormuz. A senior Iranian source and two regional officials told Reuters that the proposal marked one of the most significant concessions offered to Iran so far.

The Strait accounted for roughly 20% of global daily oil and liquefied natural gas shipments before the conflict erupted in late February.

"Until we see sustained, verifiable increases in volumes, the market will continue to price in a degree of supply risk," Waterer said.

Crude oil and condensate exports from Gulf countries were broadly stable in July but remained about 40% below pre-war levels, according to shipping data.

Iran has warned Gulf states that any renewed U.S. attack on its territory would prompt strikes against critical energy infrastructure across the region, five sources said. The warning appears aimed at increasing the potential cost of military action by putting Washington’s closest regional allies at risk.

Yemen’s Iran-aligned Houthis said they attacked two Saudi oil tankers near Yanbu and in the Gulf of Aden, though Saudi Arabia did not confirm the incidents.

Saudi Arabia also cut the September price of Arab Light crude for Asia, while a Russian refinery in Yaroslavl caught fire after a Ukrainian drone attack.