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Strait of Hormuz Hopes Rise Amid Iran-Oman Talks
3 Apr
Summary
- Iran and Oman are drafting a protocol to monitor transit through the Strait of Hormuz.
- Oil prices spiked, with US crude futures jumping nearly 12% on Thursday.
- Global benchmark Brent crude futures rose around 8% to $109.24.
Asia-Pacific markets anticipated a higher start on Friday, influenced by a developing situation in the Strait of Hormuz. Reports emerged that Iran and Oman are collaborating on a protocol intended to "monitor transit" through this vital shipping lane.
This joint effort has ignited optimism regarding the potential for a partial reopening of the Strait. Concurrently, oil prices experienced a significant surge on Thursday. U.S. crude futures climbed by almost 12%, reaching $112.06 per barrel, while the global benchmark Brent saw an increase of around 8%, trading at $109.24.
Further underscoring the market's sensitivity, the spot price for immediate Brent crude cargoes escalated to $141.36 on Thursday, marking its highest point since the 2008 financial crisis. Meanwhile, Australian and Hong Kong markets remained closed for the Easter holiday.
