Lebanon Fighting Disrupts Global Oil Supplies Amid Slow Hormuz Traffic

US-Iran Agreement Brings Oil Prices Back on Track

Oil prices have seen a significant increase as an agreement between the United States and Iran hangs in the balance. On Friday, Brent crude rose 0.65 percent, reversing earlier losses of up to 0.9 percent. The benchmark price for August delivery reached $80.37, surpassing the $80 threshold for the first time since Wednesday.

The increase in oil prices comes after a series of attacks on Lebanon by Israel, which has raised concerns about the ceasefire agreement between the US and Iran. Clashes between Israeli forces and Hezbollah fighters in southern Israel resulted in the deaths of four Israeli soldiers, according to reports.

Despite these tensions, shipping through the Strait of Hormuz appears to be proceeding, with three Saudi Arabia-flagged oil supertankers carrying approximately 6 million barrels of crude exiting the waterway on Thursday. The Hong Kong-flagged oil tanker Tong Lin Wan and the France-flagged LNG tanker Mraikh also passed through the strait.

However, ship operators have expressed concerns about the safety of their vessels and crew due to nearly four months of threats and attacks in the area. At least 46 attacks have been carried out against ships since the start of the conflict, resulting in the deaths of 14 seafarers.

The International Association of Independent Tanker Owners (INTERTANKO) has called for greater clarity on the practical steps needed to facilitate safe passage through the Strait of Hormuz. The organization’s managing director stated that ship owners have adopted a cautious approach due to concerns about safety and security.

Meanwhile, stock markets in Japan and South Korea experienced volatile trading sessions, with Seoul’s Kospi reaching an all-time high before falling 1.8 percent. Tokyo’s Nikkei 225 also saw fluctuations, closing at 0.08 percent below its opening value.

Source: Al Jazeera