The United States and Iran will hold talks in Doha on Tuesday to find a permanent solution to the four-month-old conflict‘Fresh disagreements over control of the Strait of Hormuz have emerged ahead of a crucial meeting. This disagreement has also affected the international oil market, j‘Crude oil prices rose on Tuesday as investors closely monitored the situation. Brent crude for September delivery rose one-tenth of eight percent to over $73 a barrel in the previous session. Similarly, West Texas Intermediate (WTI) prices remained stable around $70 per barrel.
Oil prices rose as Iran tried to assert its right to operate shipping through the Strait of Hormuz, one of the world’s most important energy transit routes. Iran’s Deputy Foreign Minister Kazem Gharibadi made it clear that unless Oman decided to jointly manage the waterway, Tehran plans to continue monitoring traffic through the system. This steadfast position, expressed before the talks, reflects the differences between the two sides. While the United States said talks were taking place in Doha, Iran’s foreign ministry ruled out the possibility of direct talks with Washington, saying it would only send a team of technical experts., Which reveals the fragility of this diplomatic process.
Under the current interim agreement, Iran has agreed not to impose any transit fees on ships using the Strait of Hormuz for the next 60 days. However, the agreement leaves open the way for fees to be introduced in the future, The United States strongly opposes this proposal, European countries and Gulf Arab states. Shipping through the system slowed after two ships were attacked near the waterway last week, but tanker traffic has slowly resumed. Shipping companies are eager to use the route despite security concerns.
With the risk of supply disruptions reduced, the wartime spike in crude oil prices is now largely under control. Brent crude is currently trading near its pre-war price, This brings hope that crude oil supply through the Strait of Hormuz will return to normal. Meanwhile Morgan Stanley owns them ‘Date Brent‘It has lowered its forecast. The institute attributed this to the earlier opening of the Hormuz system than expected, It cited continued US crude oil exports and reduced demand for oil in the Chinese market. Currently held in Doha‘The outcome of the upcoming US-Iran expert level talks will determine the next direction of the situation.