Oil prices went up further on Wednesday, extending a multi-day rally, as the Iran and US blockades of the Strait of Hormuz continued.
The latest proposal by Iran to end the war is unlikely to be accepted by US President Donald Trump, a CNN report said quoting sources.
Oil prices surged past the $105 threshold on Friday as an escalating maritime standoff between Iran and the United States in the Strait of Hormuz rattled global energy markets.
Oil production across the Gulf, sharply curtailed by the Iran conflict, is expected to stage a strong recovery within months once the Strait of Hormuz fully reopens, according to Goldman Sachs, offering a measure of optimism for regional energy markets.
Oil prices extended gains on Thursday after big increases in the previous session amid reports of action against ships by both Iran and the US and stalled peace talks.
Tensions in the strategically vital Strait of Hormuz escalated sharply on Tuesday after two vessels were reportedly seized by Iran’s Revolutionary Guard Corps (IRGC) and transferred to Iranian waters.
Oil prices edged lower in early Tuesday trading as markets pinned cautious hopes on a revival of US-Iran diplomacy, even as tensions around the Strait of Hormuz underscored the fragility of the situation ahead of the expiry of a two-week ceasefire.
Kuwait has declared force majeure on shipments of crude oil and refined products after a blockade of the Strait of Hormuz prevented some vessels from entering the Persian Gulf, hindering its ability to meet certain customer commitments, Bloomberg News reported.
Tensions have escalated again in the Strait of Hormuz as Iran said it was tightening control over it warning mariners that the energy lifeline was again closed, as shipping sources said at least two vessels came under fire while trying to transit the waterway. It said this was in response to a continued US blockade of Iranian ports.
A convoy of eight tankers - comprising one very large crude oil carrier (VLCC) and chemical tankers - was crossing the Strait of Hormuz on Saturday, data showed, as some ship owners said they hoped Tehran would allow them to leave the Gulf during a short ceasefire window in the Iran war.
