Ice Brent futures fell in early Asian trading after Iran and Oman moved closer to finalising their plans for a safe transit route through Hormuz.
The Ice front-month October Brent contract was at $79.25/bl at 04:00 GMT, lower by 20¢/bl from its settlement on 5 August, when it ended 9¢/bl higher.
The Nymex front-month September crude contract was at $74.90/bl, down by 32¢/bl from its settlement on 5 August, when it ended 55¢/bl lower.
Diplomatic efforts to reopen the strait of Hormuz to navigation are revolving around an Iran-Omani understanding over the management of shipping routes leading to and from the Mideast Gulf.
Iran and Oman are close to issuing a joint statement specifying "geographical coordinates" of a safe transit route through Hormuz, "if some third parties do not obstruct work in this regard", Iran's foreign ministry said on 5 August.
An Iran-Omani understanding could provide adequate diplomatic cover for US president Donald Trump's administration to adhere to the terms of a deal it signed with Iran in June and set aside a month later. Trump may have been referring to the Iran-Omani dialogue when he began on 2 August to reference ongoing talks with Iran that he said would result in reopening Hormuz within a day or two.
International shipping organisations expressed concern over the developing plan to reopen the strait of Hormuz under Iranian and Omani supervision, including the use of tolls, in an open letter to the UN.
"As discussions regarding regional security and conflict resolution take place, we must ensure that internationally recognized rights of navigation are not compromised or used as part of broader political negotiations," the letter reads. "We stand ready to work (…) to ensure that long-established legal principles governing international straits, that are protected under international law (…) are not weakened or altered."
Meanwhile, the Houthis on 5 August claimed responsibility for a maritime incident near the Red Sea, in an apparent attempt to enforce its blockade against Saudi Arabian shipping. This would be the second such attack by the Houthis against Saudi maritime activities in two days after the group claimed to have attacked a Saudi oil tanker near Yanbu.
Elsewhere, operations at the Caspian Pipeline Consortium terminal on Russia's Black Sea coast were suspended again on 5 August due to a drone threat in the area, market sources say.
Ice Brent futures fell in early Asian trading after Iran and Oman moved closer to finalising their plans for a safe transit route through Hormuz.
The Ice front-month October Brent contract was at $79.25/bl at 04:00 GMT, lower by 20¢/bl from its settlement on 5 August, when it ended 9¢/bl higher.
The Nymex front-month September crude contract was at $74.90/bl, down by 32¢/bl from its settlement on 5 August, when it ended 55¢/bl lower.
Diplomatic efforts to reopen the strait of Hormuz to navigation are revolving around an Iran-Omani understanding over the management of shipping routes leading to and from the Mideast Gulf.
Iran and Oman are close to issuing a joint statement specifying "geographical coordinates" of a safe transit route through Hormuz, "if some third parties do not obstruct work in this regard", Iran's foreign ministry said on 5 August.
An Iran-Omani understanding could provide adequate diplomatic cover for US president Donald Trump's administration to adhere to the terms of a deal it signed with Iran in June and set aside a month later. Trump may have been referring to the Iran-Omani dialogue when he began on 2 August to reference ongoing talks with Iran that he said would result in reopening Hormuz within a day or two.
International shipping organisations expressed concern over the developing plan to reopen the strait of Hormuz under Iranian and Omani supervision, including the use of tolls, in an open letter to the UN.
"As discussions regarding regional security and conflict resolution take place, we must ensure that internationally recognized rights of navigation are not compromised or used as part of broader political negotiations," the letter reads. "We stand ready to work (…) to ensure that long-established legal principles governing international straits, that are protected under international law (…) are not weakened or altered."
Meanwhile, the Houthis on 5 August claimed responsibility for a maritime incident near the Red Sea, in an apparent attempt to enforce its blockade against Saudi Arabian shipping. This would be the second such attack by the Houthis against Saudi maritime activities in two days after the group claimed to have attacked a Saudi oil tanker near Yanbu.
Elsewhere, operations at the Caspian Pipeline Consortium terminal on Russia's Black Sea coast were suspended again on 5 August due to a drone threat in the area, market sources say.
By Rhalain Reyes