Crude oil prices slipped on Monday, but they remained above USD 100 a barrel. According to reports, West Texas Intermediate crude is currently priced at USD 100 a barrel, down USD 2.43 from the previous close.
Similarly, Brent crude was around USD 104.60, down USD 3.02. Murban crude also fell USD 3.02, to USD 119.50. Natural gas was little changed at USD 2.831, down USD 0.003.
However, the supply chain threat has emerged again. The Strait faced another scare on Sunday. The UK Maritime Trade Operations agency said a vessel was hit by a projectile while passing through the waterway.
Details about the incident were limited, but Iranian state media also reported an attack on a commercial vessel near Qeshm Island, with one person killed and others injured. Saudi Arabia had also closed its East-West oil pipeline after a drone attack.
According to recent reports, Iranian officials are expected to meet Gulf Arab representatives in Oman. The meeting is expected to bring an agreement on shipping routes through the Strait. It may establish temporary lanes for commercial vessels. At this point, Washington has already rejected any arrangement that would recognize Iranian authority to impose fees on international shipping.
Also Read: Crude Falls to Four-Month Low Amid Easing US-Iran Tensions
Saudi Arabia’s East-West pipeline is an important backup route. It allows oil to move without passing through Hormuz. Other routes are also moving millions of barrels of crude and oil products each day. Even so, these routes cannot replace Hormuz overnight. The Strait handles a huge share of global oil shipments. Any long disruption could tighten supplies and keep prices high.
Possible talks in Oman could help create safer shipping routes. However, another attack or a failed deal could quickly push oil higher again. The fall in prices on Monday has not removed the bigger risk. Brent crude is still above USD 100, showing how nervous the market remains. The next move could depend on what happens around Hormuz.