West Texas Intermediate approached $91, while Brent prices surpassed $103 a barrel after a decline of over 2% on Wednesday. Tehran rejected US proposals and outlined its own prerequisites, including control over the crucial waterway, while the White House asserted that diplomatic efforts are ongoing.
Reports from the semi-official Fars news agency indicate that Iran’s parliament is working on a proposal to levy a fee for providing protection to vessels navigating through the waterway.
Also Read: Asian stocks on edge as Middle East ceasefire talks take centre stage
The outlet, citing an anonymous lawmaker, reported that the draft is expected to be finalized next week.
As turmoil engulfs the energy-rich Middle East, sending ripples across the global economy—especially impacting Asia—the global crude benchmark is set for its largest monthly gain since 1990.
The near-total closure of Hormuz has resulted in the loss of millions of barrels of oil production daily, further driving up prices.
Rob Kapito, president of BlackRock Inc., warned that investors may be underestimating the risks tied to the conflict. He remarked during a Melbourne event on Thursday that even if we were to announce tomorrow that the war is over, oil prices could surge to $150 per barrel due to the time needed for supply chains to return to full operation.
(Edited by : Juviraj Anchil)
