(RTTNews) – Crude oil prices have edged higher on Monday amid reports indicating that the U.S. and Iran are set to renew diplomatic efforts to halt the recently erupted confrontation even though both nations have not ceased their attacks on each other.
WTI Crude Oil for August month delivery was last seen trading, up by $0.39 (or 0.47%) at $82.88 per barrel.
After the June 17 Memorandum of Understanding signed between the U.S. and Iran became inoperative since the U.S. began attacks on Iran following Iran firing at ships traveling across the Strait of Hormuz, the U.S. continued its strikes on Iran for the ninth straight day.
Iran announced the closure of the Strait of Hormuz after the recent breakout of the conflict.
To force Iran to reopen the strait, U.S. forces conducted airstrikes on Iran targeting military installations and communications networks.
Today, the U.S. military intensified its attacks in response to the deaths of three U.S. service members in Iraq and Jordan following an Iranian attack on July 17. U.S. President Donald Trump stated that the attacks were carried out in honor of the U.S. service members killed in recent days in the gulf.
On its part, announcing the truce as invalid, Iran targeted U.S. bases in the gulf. Iran launched fresh strikes on Jordan (Aqaba Airport), Kuwait (Al-Adiri camp and Ali Al Salem Air Base), and Syria. Iran also hit an U.S. radar and aircraft in Qatar.
Iraq’s Dana Gas has shut its main production facilities at Khor Mor gas field following what it called credible security threats.
Amid the ongoing fiery strikes and the current blockade to the shipping traffic across the Strait of Hormuz, crude oil prices moved higher.
After reports indicated that the U.S. and Iran are pursuing diplomatic measures to end their hostilities, the gains were restricted.
U.S. Secretary of State Marco Rubio stated that the U.S. is receiving feelers through several channels that communicated Iran’s willingness to pursue talks. Rubio asserted that the U.S. remains receptive to dialogue but wanted a deal with Iran that they really can live by.
Today at a new conference, Iran’s Foreign Ministry spokesperson Esmaeil Baghaei stated that “exchanges” with the U.S. are going on. He observed that the diplomatic apparatus has been active in and ideas have been conveyed to Iran by mediators.
Reuters reported citing a senior official that mediators have offered Iran a proposal to pause the war with the U.S. that would include a 10-day ceasefire. Both nations would then revive the recently signed interim deal and re-explore ways to end their hostilities.
In the U.S., the national average price of gasoline exceeded $4.00 per gallon today, according to the American Automobile Association data.
According to the Maritime News from Marine Traffic, the Strait of Hormuz crossings remained limited over the weekend with 30 verified crossings from July 17 to 19 and 8 crossings on July 19.
From July 17 to 19, 13 crossings used the Iranian Unilateral Scheme, 14 were “Route Undetermined”, while two used Omanian Territorial Waters Passage and one used the Hormuz TSS.
Bloomberg quoted a Morgan Stanley report stating that European diesel markets could tighten further with inventories falling to multi-year low.
As the clashes spill to other nations in West Asia, concerns of a full-blown war has alarmed global majors who are urging both sides to resume talks.
Experts are of the view that despite heated exchange of rhetoric between the U.S. and Iran and the forceful attacks on each other’s military installations, due to domestic pressure, both the nations will find ways to pause their attacks and explore ways to end the crisis.
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