The price of Brent crude oil has currently reached $102.20 per barrel, indicating a stabilization of prices in the oil market. Meanwhile, the price of West Texas Intermediate has also reached $91.43 per barrel. These price changes occur as the oil market is influenced by news related to peace talks in the Middle East and the critical situation in the Strait of Hormuz.
Impact of Peace Talks on Oil Prices
Reports indicate that this week, the price of Brent oil fell below $100 per barrel at certain points, primarily due to news about the resumption of the East-West pipeline in Saudi Arabia and increased oil flows from the Strait of Hormuz. However, the speech by the President of the United States at the United Nations General Assembly reminded the oil market of reality. In this speech, he threatened that Iran would face "destruction."
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Iran's Conditions for Reopening the Strait of Hormuz
The President of Iran, Masoud Pezeshkpour, announced that Iran is ready to negotiate for peace but emphasized that it will not respond with force. He stated: "The remarks of the President of the United States yesterday ... are a sign of a bullying mindset. ... The people of Iran will not be pressured." Iran has set conditions for reopening the Strait of Hormuz, which include ending the naval blockade of Iranian ports, lifting sanctions, and releasing Iran's assets. The United States has not completely rejected these conditions, but it has also not shown signs of readiness to accept them.
Overall, the crisis in the Middle East and lack of progress in peace talks have supported oil prices. Despite the resumption of Saudi pipeline activities, oil prices remain significantly high compared to a month ago and have experienced a 60% increase this year, which has also been confirmed by ING commodity analysts.
Read more: 16.5% decrease in India's oil imports from Russia in August · Increase in Saudi oil exports from the Strait of Hormuz to 2.9 million barrels per day
