2026-07-21T05:28:46+00:00
Shafaq News
Oil prices
softened on Tuesday, with markets weighing reports of mediation efforts between
the U.S. and Iran against an exchange of fresh attacks between the two and
threats of a naval blockade of Saudi Arabia by Yemen’s Houthis.
Brent crude
futures eased 78 cents, or 0.9%, to $88.44 per barrel by 0415 GMT. U.S. West
Texas Intermediate crude was down 73 cents, or 0.9%, to $82.50 per barrel,
while the more active contract for September delivery slipped 41 cents, or
0.5%, to $82.07 a barrel.
“There’s
some hope of de-escalation between the U.S. and Iran. Reports are that mediators are proposing a 10-day ceasefire, which could
put the Memorandum of Understanding (MoU) back on track,” ING analysts said in a note,
referring to the June interim deal.
However, this
won’t be easy as major differences remain between Washington and Tehran, while
Trump has warned of retaliation after several U.S. troops were killed, ING
added.
A senior
Iranian official told Reuters Tehran had received a proposal from mediators for
a 10-day ceasefire in efforts to salvage the deal signed on June 17, intended
to pave the way for a lasting agreement to end the war that began on February
28 with U.S.-Israeli attacks on Iran.
The diplomatic
push followed another night of U.S. strikes on Iranian cities and attacks by Iran’s
Revolutionary Guards on U.S. military assets across the region. Later on
Monday, U.S. Central Command said it had begun another round of strikes on
Iran.
A tanker in the
Strait of Hormuz reported being struck by an unknown projectile, forcing its
crew to abandon ship and board a lifeboat, the United Kingdom Maritime Trade
Operations agency said on Tuesday. Vessel crossings via the strait also dropped further
amid growing caution following fresh attacks between the U.S. and Iran.
Additionally,
Yemen’s Iran-aligned Houthis said on Monday they would impose a naval blockade
on Saudi Arabia, opening a potential new front against the U.S. in its war on Iran and raising the threat to global energy supplies and trade
beyond the Gulf.
“The
threats of a naval blockade on Saudi Arabia by the Houthis are significant
because they raise the risk of disruption to another major oil exporter,” said Tim Waterer, chief market analyst
at KCM Trade.
Meanwhile, U.S.
crude oil stockpiles were expected to have fallen last week alongside
gasoline, while distillate stocks likely rose, a preliminary Reuters poll
showed on Monday.
(Reuters)
Only the
headline is edited by Shafaq News.
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