Oil opens higher with no Middle East ceasefire in sight

Brent crude’s price has opened the week higher, as a ceasefire deal between the US-Israel and Iran remains elusive.

IMAGE: Getty Images

Oil gained upward support over the weekend following US President Donald Trump’s latest remarks on reopening the Strait of Hormuz.

Trump said the US could “take the oil and make a fortune,” signalling that Washington may seek control over Iran’s crude, echoing its earlier approach in Venezuela after the capture of President Nicolás Maduro.

The comments come as the Strait of Hormuz remains effectively closed to vessel traffic due to missile attacks - targeting commercial vessels, ports and energy infrastructure across the Middle East.

"Time is running out" for Iran to strike a deal or reopen the Strait, Trump warned, adding that the US military could target Iran’s power plants and bridges tomorrow.

Meanwhile, Tehran has warned it will continue targeting assets linked to US interests, including energy and logistics infrastructure.

In other news, the UAE has officially joined Bahrain’s resolution in urging the United Nations Security Council (UNSC) to take immediate action to restart vessel movement through the Strait of Hormuz.

Speaking on the situation, UAE Foreign Minister Dr. Abdullatif bin Rashid Al-Zayani said the closure of the Strait of Hormuz is “no longer a regional issue,” but a direct threat to global stability, food and energy security and international law.

The UNSC is expected to vote this week on a resolution aimed at restoring commercial shipping around the Strait of Hormuz, Reuters reported, although Russia and China are likely to veto any measure authorising the use of force.

The global oil market has factored in these risks, with oil benchmarks rallying and supply disruptions tightening availability across regions, according to market analysts.

International Maritime Organization (IMO) secretary general Arsenio Dominguez has urged member states to support global diplomatic efforts “to secure the evacuation of around 20,000 seafarers” currently stranded in the Persian Gulf.

Since the beginning of the conflict on 28 February, at least 21 attacks on commercial ships have resulted in the deaths of 10 seafarers, according to the IMO.

“IMO is advancing a maritime evacuation framework… with the clear objective of releasing stranded vessels, enabling safe crew rotations and preventing an environmental disaster,” Dominguez said.

By Aparupa Mazumder

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