Brent moves higher as tension in Hormuz rises
The front-month ICE Brent contract has gained by $1.33/bbl on the day, to trade at $72.10/bbl at 09.00 GMT.
IMAGE: Getty Images
Upward pressure:
Brent crude’s price has traded higher once again, after Iran’s joint military command threatened ‘forceful response’ against commercial vessels in the Strait of Hormuz that fail to comply with its approved shipping routes.
The development comes after the US Central Command (CENTCOM) issued a statement pledging safe passage through the region, aligning its mission with its allies in the Middle East.
US CENTCOM commander Brad Cooper met with military officials from Bahrain, Kuwait, Saudi Arabia, and eight more Middle Eastern countries on Wednesday, to discuss vessel transit through the Strait of Hormuz.
The meeting has triggered the stark response from Iran, according to market analysts.
Downward pressure:
The resumption in commercial vessel transit through the Strait of Hormuz has largely capped Brent’s price gains today.
About 14 million bbls of crude oil has successfully passed through the critical waterway on Wednesday, ANZ Bank’s senior commodity strategist Daniel Hynes said, citing Bloomberg ship tracking data.
Meanwhile, a total of 43 commercial vessels crossed the Strait on the same day, according to maritime intelligence firm Windward.
Oil is under pressure “as crude flows through the Strait of Hormuz continue to improve,” Hynes said.
By Aparupa Mazumder
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