ISTANBUL, May 5 — Brent crude futures fell more than 3.0 per cent to around US$111 per barrel on Tuesday as investors assessed whether the latest escalation in the Strait of Hormuz could derail efforts to restore transit through the key shipping route,
Anadolu Ajansı reported that prices were around US$111.40 a barrel as of 1.10pm GMT on Tuesday, after dropping 3.0 per cent. The decline followed a 4.4 per cent gain in the previous session, when prices rose on renewed concerns over supply disruptions after the United States (US) and Iran exchanged fire near the Strait.
US forces said they repelled Iranian attacks while escorting two American-flagged vessels through the waterway, adding that they also defended commercial ships from drones and small boats.
The incident cast doubt on the durability of a four-week ceasefire and underscored the fragile security environment around the Strait of Hormuz, one of the world’s most critical oil transit routes.
Meanwhile, on Monday, US President Donald Trump said that the war with Iran could continue for another two or three weeks.
“Time is not of the essence for us,” he said in a phone interview with radio host Hugh Hewitt, also declining to say whether the ceasefire with Iran had ended after reported Iranian fire toward the United Arab Emirates (UAE).
The UAE also reported intercepting Iranian missiles and confirmed a fire at its Fujairah oil terminal, further heightening concerns over energy infrastructure in the region.
The latest developments followed Trump's announcement of a plan to restore transit through the strait and assist stranded vessels.
Oil markets have been highly sensitive to developments in and around the Strait of Hormuz since the conflict escalated, with traders balancing the risk of a broader war against the possibility that the latest military actions are part of pressure tactics linked to negotiations.
