Brent Crude Slumps 3 Percent Amid Hormuz Crisis
Prices hovered near $111.4 a barrel by 1310 GMT Tuesday following the sharp drop — a reversal that came on the heels of a 4.4% surge the prior session, when fresh fears over supply disruptions propelled prices higher after U.S. and Iranian forces exchanged fire near the strait.
U.S. forces reported successfully repelling Iranian attacks while escorting two American-flagged vessels through the waterway, adding that they also shielded commercial ships from drone strikes and small-boat assaults.
The exchange cast a long shadow over the durability of a four-week ceasefire and laid bare the precarious security conditions surrounding the Strait of Hormuz — one of the world's most consequential oil transit chokepoints.
On the diplomatic front, U.S. President Donald Trump said Monday the conflict with Iran could drag on for another two to three weeks. "Time is not of the essence for us," Trump said in a phone interview with radio host Hugh Hewitt, while also declining to confirm whether the ceasefire had effectively collapsed following reported Iranian fire directed at the United Arab Emirates.
The UAE confirmed it had intercepted Iranian missiles and reported a fire at its Fujairah oil terminal, sharpening fears over the vulnerability of critical energy infrastructure across the region.
These developments followed Trump's announcement of a plan to reopen strait transit and assist vessels stranded by the conflict.
Oil markets have remained acutely reactive to every shift in and around the Strait of Hormuz since hostilities escalated, with traders caught between the threat of a broader regional war and the possibility that the latest military moves are calculated pressure plays tied to ongoing negotiations.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
