From Adanna Nnamani, Abuja
Oil prices edged lower on Monday as investors reacted to news of a limited resumption of tanker traffic through the Strait of Hormuz, a critical global shipping lane that has been largely closed due to regional tensions.
Around 10:50 GMT, Brent crude, the international benchmark, fell 0.8 percent to $108.20 per barrel, while West Texas Intermediate (WTI), the U.S. benchmark, was down 1.4 percent at $110.01 per barrel.
According to SEB analyst Ole Hvalbye, “The declines came as markets absorbed reports that a third Turkish-owned ship had safely navigated the strait over the weekend.
“There is definitely some sort of volumes being shipped through the strait, by far not at all normalising the commercial ship traffic, but it is definitely a step in the right direction.”
“Even with some tankers passing through, the situation is far from normal. Investors are watching closely for any further escalation,” Hvalbye added.
The Turkish Ocean Thunder tanker, carrying crude from Iraq to Malaysia, passed through the strait on Sunday, according to Turkey’s Transport Minister.
This follows two other vessels that exited the strait safely over the weekend, highlighting a cautious resumption of shipping activity in the strategically vital waterway.
Japanese shipping firm Mitsui O.S.K. Lines also confirmed that an Indian-flagged LPG tanker owned by its subsidiary had successfully crossed the strait on Monday.
According to Marine Traffic, the Ocean Thunder departed from Basra, Iraq, before navigating the tense waters.
The Strait of Hormuz has been closed by Iran since February 28, following U.S.-Israeli strikes on Iranian targets that sent global oil and gas prices soaring. Iran’s Revolutionary Guards warned over the weekend that the strait “will never return to its former status, especially for the US and Israel,” signaling ongoing geopolitical risk despite the partial openings.
Analysts said the market response reflects a balance between relief at some shipping resuming and caution over continued instability in the region.
As the world’s oil supply routes remain under threat, analysts warn that energy markets are likely to experience volatility in the coming weeks, with traders weighing both geopolitical risks and incremental developments like these limited tanker passages.
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