Brent gains after Iran threatens more vessel attacks in Hormuz
The front-month ICE Brent contract has gained by $1.91/bbl on the day, to trade at $89.54/bbl at 09.00 GMT.
IMAGE: Getty Images
Upward pressure:
Brent crude’s price has risen after Tehran blacklisted 45 vessels and threatened to impose hefty penalties on those that violate its regulations for transiting the Strait of Hormuz.
The announcement comes after Washington vowed sweeping economic sanctions against Tehran, in a bid to drive the OPEC producer’s oil and petroleum product export revenues to zero.
The US announced nearly 60 Iran-related sanctions and threatened of secondary sanctions on the Islamic Republic’s international allies – like China.
“Oil prices edged higher as prospects for renewed US-Iran talks diminished,” two analysts from ING Bank noted.
Downward pressure:
Brent’s price has felt some downward pressure following a surprise build in US crude stocks.
Commercial US crude oil inventories increased by 95,000 bbls to 429 million bbls in the week ending 21 August, according to data from the US Energy Information Administration (EIA).
The data followed a bigger build of 4.2 million bbls, reported by the American Petroleum Institute (API) during the same week.
A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.
By Aparupa Mazumder
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