The VLCC Mobassa B (previously named Front Forth), one of the two tankers which the UAE defence ministry said was struck by Iranian cruise missiles while transiting the Strait of Hormuz, in Rotterdam, Netherlands, August 18, 2024, in this picture obtained by Reuters on July 14, 2026.<\/p>\n
Edwin van Werd | via Reuters<\/p>\n
Oil\u00a0prices steadied on Tuesday at more than one-week highs amid fading hopes of a deal between the U.S. and Iran to end their war and reopen the Strait of Hormuz, after President Donald Trump demanded compensation for damage the U.S. has incurred.<\/p>\n
Brent<\/a> crude futures\u00a0fell 10 cents, or 0.11%, to $87.62 a barrel, while U.S. West Texas Intermediate<\/a> crude futures\u00a0were down 5 cents, or 0.06%, to $82.08 a barrel.<\/p>\n Both benchmarks rose more than 5% on Monday to their highest since July 31, after Trump responded to Iran’s conditions for a peace deal with his own demands that Iran pay compensation for people killed in wars, attacks and protests, which is likely to complicate efforts to reopen the Strait of Hormuz.<\/p>\n Later in the day he added that the U.S. had control of the strait and had swept the strategic\u00a0oil\u00a0waterway for Iranian mines.<\/p>\n “There appears to be a gulf, no pun intended, between the U.S. and Iran over what any agreement would actually look like,” said Tim Waterer, chief market \u200canalyst at \u2060KCM Trade.<\/p>\n “As a result, some of the optimism that built up last week is being unwound, giving\u00a0oil\u00a0prices a decidedly bid tone.”<\/p>\n Meanwhile, Saudi Aramco\u00a0has postponed\u00a0the restart of its 400,000-barrel-per-day Jazan refinery to August 30 after the Houthis claimed two attacks\u00a0on the plant on Sunday.<\/p>\n “The chokehold risk around both the Strait of Hormuz and the Bab el-Mandeb remains highly significant. Even intermittent restrictions or the threat of further incidents keep insurance costs elevated and force longer shipping routes … hence energy flows look likely to stay constrained near term,” Waterer said.<\/p>\n In a note on Monday, analysts at Barclays said that in the week ending August 7, crude\u00a0oil\u00a0and refined product net exports through the Strait of Hormuz averaged 3 million barrels per day, down from 4.4 million bpd the previous week.<\/p>\n Markets will likely remain in a state of morbid detachment if\u00a0oil\u00a0continues to slip through both blockades via ship-to-ship transfers and overland routes, said IG’s analyst Tony Sycamore.<\/p>\n Meanwhile, the Abu Dhabi National\u00a0Oil\u00a0Company (ADNOC) is offering spot\u00a0crude in a tender, its eighth issued since the start of June as the UAE state\u00a0oil\u00a0company works to move\u00a0oil\u00a0from inside the Strait of Hormuz.<\/p>\n