|
Brent crude has swung dramatically during the Iran war, rising
from roughly $70 per barrel before the war in late February to
more than $119 at times. On Friday, ahead of the peace talks,
Brent for June delivery fell 0.8% to $95.20 per barrel.
Iran has been effectively controlling the Strait of Hormuz, a
key waterway for global oil shipping.
U.S. Central Command said the blockade would be “enforced
impartially against vessels of all nations” entering or
departing Iranian ports and coastal areas, including all Iranian
ports on the Persian Gulf and Gulf of Oman.
It said it would still allow ships traveling between non-Iranian
ports to transit the Strait of Hormuz.
Around a fifth of the world’s traded oil typically flows through
the Strait of Hormuz every day. Saudi Arabia, Iraq, the United
Arab Emirates, Kuwait, and Iran are all major exporters.
Traffic in the strait has been limited even in the days since
the ceasefire. Marine trackers say over 40 commercial ships have
crossed since the start of the ceasefire.
Claudio Galimberti, chief economist of Rystad Energy, said the
blockade will raise prices but might move the needle on talks.
“It means the oil markets will be even tighter than before,” he
said. “However, I think this is a negotiation tactic, which
eventually resolves into a full opening of Hormuz. So, more pain
now, but more gain later.”
However, Jim Krane, Energy Research Fellow at Rice University,
said the blockade might be effective as a long-term strategy to
impose pain on the Iranian economy, but it isn't a good
short-term negotiating tactic when the oil market is already
under strain.
“If the deficit to the oil market takes another jump it is going
to impose pain on every person on Earth that’s subject to market
oil prices,” he said.
All contents © copyright 2026 Associated Press. All rights reserved
|
|
