Global Oil Prices Rebound as Investors Watch Progress on Hormuz Strait Reopening
GeopoliticsCommodity Impact 4
Global crude oil prices rebounded today as investors monitored progress in negotiations to reopen the Strait of Hormuz. As of 7:55 PM Thailand time, West Texas Intermediate crude for September delivery rose by 1.07 dollars, or 1.42 percent, to 76.29 dollars per barrel, while Brent crude for October delivery gained 1.32 dollars, or 1.66 percent, to 80.77 dollars per barrel. Saudi Arabia's Al Hadath and Al Arabiya news channels reported, citing senior sources, that Iran and Oman have reached a mutual understanding on a framework agreement to reopen the Strait of Hormuz for 60 days. The agreement still requires approval from Iran's Supreme National Security Council and could be officially announced within days. Once approved, the United States and Iran will return to implementing the memorandum of understanding and will begin enforcing Article 5, which concerns the reopening of the Strait of Hormuz and ensuring the safety of commercial shipping through the strait.
