Noida, Sep 11 (APAC Media): Crude Oil prices fell on Friday after reports that Iran and Oman were meeting with Gulf states to discuss reopening shipping through the Strait of Hormuz, easing some concerns over supply disruptions.
Brent crude futures fell 1.96% to $105.60 a barrel by 12:15 IST, while U.S. West Texas Intermediate (WTI) crude was down 1.6% at $100.84 a barrel.
Despite the decline, both benchmarks remained on track for strong weekly gains after some of the most severe attacks on shipping since the conflict began. Brent and WTI were each up more than 11% for the week.
Brent earlier climbed as high as $109.98 a barrel, its highest level since early May, before giving up some of those gains as hopes of a reopening of the key shipping route emerged.
Gulf foreign ministers are expected to meet their Iranian counterpart on Monday to discuss a possible deal aimed at managing commercial shipping through the Strait of Hormuz, the Financial Times reported on Friday.
The meeting, initiated by Oman, would mark the first gathering of senior Gulf diplomats with Iranian officials since the U.S.-Israeli offensive against Iran began in late February.
The talks are scheduled to take place in the Omani coastal city of Salalah, according to the FT, which said the meeting was likely to go ahead.
Iran and Oman had indicated in August that they were discussing an arrangement to facilitate commercial shipping through the strategic waterway. Washington, however, had largely opposed such an agreement and warned Gulf states against negotiating with Tehran.
Washington largely maintained its naval blockade of Iran, with little sign of a resolution to the conflict as tensions continued to weigh on global oil supplies.
Oil prices had surged above $100 a barrel earlier this week after Iran said it had attacked 10 ships near the Strait of Hormuz.
The United States said it retaliated by sinking five Iranian tankers.
The strikes represented some of the most intense fighting between the two sides in months, underscoring the lack of any meaningful de-escalation as the conflict approached its seven-month mark.
Concerns over further supply disruptions also grew after Yemen’s Iran-backed Houthi group was reported to have seized control of the port city of Mocha, strengthening its position around the Bab el-Mandeb Strait.
The Houthis, who have declared a naval blockade against Saudi Arabia, were reported to have attacked ships in the Bab el-Mandeb and launched strikes against Saudi energy infrastructure.
Media reports early on Friday said the group had struck Saudi Arabia’s East-West oil pipeline, triggering six major fires near the facility. The reports could not immediately be independently verified.
Any sustained Houthi attacks around the Bab el-Mandeb or on Saudi oil infrastructure could disrupt another major Middle Eastern supply route, compounding the impact of the Strait of Hormuz crisis and pushing traders to build a larger geopolitical risk premium into crude prices.
–ENDS–
Disclaimer:Â This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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