Key facts
- Iran's parliament is considering a bill to permanently ban hostile vessels from the Strait of Hormuz.
- A US official indicated progress between Iran and Oman on a deal concerning the Strait of Hormuz.
- The US expects a deal soon to restore unimpeded commercial shipping through the Strait.
- The US plans to lift its blockade of Iranian ports once the deal is announced and Iran fulfills its commitments.
- Conflicting signals from Tehran and Washington are creating uncertainty in oil markets.
Conflicting signals from Washington and Tehran are creating uncertainty in oil markets as Iran's parliament reviews a bill to permanently ban hostile vessels from the Strait of Hormuz. This comes as President Trump insists a deal is within reach, while ICE Brent crude is set to close the week at $83 per barrel.
Iran and Oman have agreed on coordinates for a proposed shipping corridor, but key details remain unresolved, and the deal alone would not guarantee security in the strait. Meanwhile, Saudi Aramco has split its September pricing strategy, cutting its flagship Arab Light grade for Asia but raising scarce Arab Medium and Heavy grades, suggesting a potential increase in Gulf output.
In other energy and commodity news, a US federal appeals court blocked the EPA's cancellation of Biden-era clean-energy grants, restoring $20 billion in funds. ConocoPhillips CEO Ryan Lance is set to retire, handing the reins to CFO Andy O’Brien. China has relaxed restrictions on refined product exports for August, allowing significant transportation fuel shipments. Mexico's President Claudia Sheinbaum has ruled out fracking projects, despite the country's reliance on US gas imports. Rhine shipping costs have surged due to record low water levels, while US natural gas futures have fallen to a 14-week low. China is pushing for yuan-denominated benchmarks for iron ore pricing, and London has sanctioned additional Russian banks and tankers. Moscow has extended a waiver for lower-grade gasoline production, and the Democratic Republic of Congo has banned raw copper and cobalt exports. Iraq and Syria aim to rebuild the Kirkuk–Baniyas pipeline by 2029 to bypass the Strait of Hormuz.