Bangla Press Desk: Global oil prices have fallen by more than 1 percent. Despite risks to oil supplies—exacerbated by an increase in attacks on commercial vessels in the Strait of Hormuz—a move by the United States to ease sanctions (aimed at reducing shipping costs) has exerted downward pressure on market prices, according to Reuters.
On Thursday (October 15) at 3:37 AM Greenwich Mean Time (GMT), the price of Brent crude in the international market dropped by $1.64—or 1.6 percent—to $104.42 per barrel. Simultaneously, the price of U.S. West Texas Intermediate (WTI) crude fell by 98 cents, or 1 percent, to $94.11 per barrel.
Prior to this, on Wednesday, WTI prices had reached a three-week high. Prices had surged following a Houthi attack on the headquarters of the Saudi state-owned oil company, Saudi Aramco, and an announcement by Iran regarding new tactics for targeting vessels in the Strait of Hormuz.
Maritime security officials reported on Wednesday that, over the past 24 hours, a container ship and a dry-cargo vessel were struck by missiles or other projectiles near the Strait of Hormuz. Attacks on vessels in the vicinity of this critical waterway have risen significantly over the last 10 days. Iran claims that it is intensifying these attacks in response to U.S. blockades on its ports and the stringent sanctions imposed last month.
If such attacks continue in the Strait of Hormuz—one of the world’s most vital routes for oil transport—there is a risk of disruption to global oil supplies. This has also fueled growing concerns regarding the safety of maritime traffic and rising transportation costs.
Shipping costs have reached record levels as maritime traffic faces disruptions linked to the conflict involving Iran. In this context, the Trump administration is considering easing sanctions on certain vessels within the so-called "shadow fleet"—ships currently subject to sanctions that are used to transport oil and petroleum products from countries including Russia, Iran, and Venezuela—with the aim of lowering fuel prices.
According to the official, the core of the discussion involves allowing some previously sanctioned vessels to legally transport oil. Through this, Washington intends to increase the supply of oil in the market and reduce transportation costs.
BP/TD
