Oil prices fall amid tensions between the US and Iran: how much do Brent and WTI cost?

Global oil prices fell on September 3. Investors are assessing the risks of a possible resumption of military strikes between the United States and Iran, while ship traffic through the strategically important Strait of Hormuz remains significantly lower than usual.

The world market recorded a decrease in the cost of major oil brands. Uncertainty persists due to the situation surrounding the United States and Iran and the possibility of a new escalation.

How much does oil cost

Brent crude futures fell by 43 cents, or 0.45%, to $95.20 per barrel.

US West Texas Intermediate (WTI) crude fell by 24 cents, or 0.26%, to $90.77 per barrel. These figures were recorded as of 00:29 GMT on September 3.

What’s happening in the Strait of Hormuz

One of the key factors for the oil market remains the situation in the Strait of Hormuz, through which significant volumes of world energy supplies pass.

According to preliminary data from Kpler, only four cargo ships passed through the strait. For comparison, the average figure for the previous ten days was about 13 ships.

IG analyst Tony Sycamore suggests that if the current easing of tension continues, oil supplies through the Strait of Hormuz may gradually return to the levels observed at the end of last week.

In particular, this concerns transportation using the so-called shadow fleet and the transshipment of oil from one ship to another.

Iran has tightened requirements for ships

The situation with shipping is also affected by Iran’s actions. Tehran has expanded the list of ships that, in its opinion, do not meet the established requirements.

If they attempt to pass through the strait, such vessels may face fines, detention, or confiscation.

Thus, the further dynamics of oil prices will largely depend on the development of the situation between the US and Iran and the stability of shipping through the Strait of Hormuz.