Missile Attack Pushes Crude Higher
Oil prices moved higher on Wednesday after Yemen’s Iran-backed Houthi militants claimed responsibility for a missile strike on a Saudi Arabian tanker in the Red Sea. Brent crude, the international benchmark, rose 1% to $80.22 per barrel, while U.S. West Texas Intermediate futures gained 0.46% to $76.12. The Iranian-backed group said the tanker was hit near Yanbu, a major Saudi export port for crude oil.
Hormuz Talks Continue
The reported attack came as the U.S., Iran and Oman continued negotiations aimed at easing tensions in the Strait of Hormuz. According to Axios, the parties are discussing an interim arrangement under which inbound ships would pass through Iran’s territorial waters. At the same time, outbound vessels would travel through Oman’s waters in coordination with Tehran.
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President Donald Trump told Fox News on Tuesday evening that negotiations had continued throughout the day.
“It looks like things are very good,”
he said.
Treasury Secretary Scott Bessent also told CNBC on Tuesday that an agreement to reopen the strategic waterway could be reached this week.
Market Watches Regional Tensions
The U.S. and Iran signed a memorandum of understanding on June 17 to reopen the Strait of Hormuz, but the agreement quickly unraveled after fighting broke out over shipping routes through the waterway.
According to the report, Tehran targeted vessels sailing along Oman’s coast under U.S. military protection in an effort to force ships through its territorial waters. Washington responded with more than a dozen waves of airstrikes and reinstated its naval blockade on Iran.
Oil prices had fallen around 6% on Tuesday amid optimism that the strait could reopen. Crude has remained under pressure in recent days after Trump called off a planned attack on Iran earlier this week in favour of renewed negotiations.
