Oil Gains as US Attacks on Iranian Ships Raise Escalation Risks
Oil prices remain stable as Iran negotiates a new shipping route through the Strait of Hormuz amid ongoing tensions with the US. Recent military strikes between the two nations have heightened concerns over potential supply disruptions.
Why it matters
Escalating conflict in the Middle East threatens global energy security and could drive oil prices toward $100 per barrel if shipping lanes are compromised.
(Bloomberg) -- Oil was little changed as Iran said it was nearing the end of negotiations with Oman for a new route through the Strait of Hormuz, with tensions in the key waterway remaining elevated due to repeated ship attacks.
Brent traded near $96 a barrel, while West Texas Intermediate was around $91. Iran said its discussions with Oman could lead to an agreement in the coming days and that the understanding will be documented with the International Maritime Organization, though previous rounds of discussions have failed to strike a deal.
The US said it launched strikes against three Iranian oil tankers over the weekend, destroying one, in retaliation for ballistic missile attacks on US Navy warships.
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