Oil prices edged higher on Monday as traders assessed the state of an uneasy cease-fire in the Persian Gulf. An American official said the United States and Iran had agreed to halt attacks in the Strait of Hormuz, raising hopes that the hostilities of recent days may not escalate into a full resumption of war.
A U.S. official, who spoke on the condition of anonymity to discuss ongoing negotiations, said the United States and Iran had agreed to allow commercial vessels to transit the strategic waterway while continuing talks on the existing memorandum of understanding. Iran has yet to confirm the latest agreement.
The cease-fire had appeared to be unraveling after an Iranian drone strike on a cargo ship on Thursday. The United States responded a day later by targeting Iranian air-defense sites and other military infrastructure. In turn, Iran’s Revolutionary Guards said they had launched missiles and drones this weekend at a U.S. naval base in Bahrain and an air base in Kuwait.
The number of ships navigating the strait dropped steadily through the weekend.
Oil creeps higher.
-
The price of Brent crude, the global benchmark for oil, rose over 1 percent on Monday to between $73 and $74 a barrel for September delivery, the most actively traded contract. Prices remain near prewar levels, where they returned last week after a series of declines.
-
West Texas Intermediate crude, the U.S. benchmark, rose 1.5 percent to around $70 a barrel.
Stocks gain.
-
Futures on the S&P 500 pointed to an increase of about half a percent when stocks resume trading in the United States on Monday.
-
Stocks in Asia, where countries import vast quantities of oil and gas, were mixed. Shares in Taiwan were up 1 percent, while Hong Kong’s Hang Seng rose nearly 2 percent. South Korea’s benchmark KOSPI fell 0.2 percent.
-
In Europe, the Stoxx 600, a broad index that tracks the region’s largest companies, was flat.
Gasoline prices fall slightly.
-
Gas prices fell again on Monday, dropping by a penny to a national average of $3.86 a gallon, according to the AAA motor club. Still, gas prices have risen 30 percent since the war began.
-
Gas prices don’t move in lock step with crude, usually trailing increases or drops by a few days.
-
The average price of diesel slipped to $4.86 per gallon on Monday, up nearly 30 percent since the start of the war.
The post Oil Prices Rise as U.S. and Iran Discuss Deal to Suspend Attacks in Gulf appeared first on New York Times.
