Brent holds well above $100/bbl as Iran conflict continues to flare
Oil has held steady over the weekend, with no US-Iran ceasefire agreement in sight, according to market analysts.
IMAGE: Strait of Hormuz. Getty Images
The US Central Command (CENTCOM) said in a statement that it will start a new operation in the Strait of Hormuz – Project Freedom – from today, in yet another bid to restore navigation through the highly crucial oil chokepoint.
The mission will “support merchant vessels seeking to freely transit through the essential international trade corridor,” CENTCOM said.
The Strait of Hormuz handled about 20% of the world's global seaborne oil flows before the Middle East war broke out on 28 February.
The mission will include guided-missile destroyers, over 100 land and sea-based aircraft, multi-domain unmanned platforms, and 15,000 service members, US CENTCOM said.
Meanwhile, Iran’s speaker of parliament Mohammad Bagher Ghalibaf has warned that oil prices could spike up to $140/bbl if the US continues to block the passage of Iran-linked ships through the Strait.
Tehran has signalled it will keep the chokepoint closed to unrestricted traffic and will not return to talks unless the US lifts its blockade.
“The market is steadier at the start of the new trading week, despite continued noise around developments in the Persian Gulf,” two analysts from ING Bank noted.
By Aparupa Mazumder
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