Key facts
- Oil prices rose for a fourth consecutive day due to supply uncertainty.
- US President Donald Trump stated no talks were taking place with Iran.
- Iran asserted the Strait of Hormuz remained shut to shipping.
- China's Sea Legend is launching a weekly service via the Arctic's Northern Sea Route.
- Two Chinese shipping giants have stopped sending oil tankers through Hormuz and Bab al-Mandeb.
Oil prices saw a slight increase, marking the fourth consecutive day of gains, driven by supply uncertainties stemming from the Middle East conflict. Investors are closely monitoring conflicting signals from Tehran and Washington regarding the status of the Strait of Hormuz. US President Donald Trump stated that no talks were underway with Iran and insisted the strait remained open, directly contradicting Iran's assertion that it was closed to shipping. This diplomatic stalemate has led Iran to adopt a 'fully offensive' military posture. In response to potential disruptions through the Strait of Hormuz, Iraq's cabinet has approved a new mechanism for exporting crude oil via multiple outlets, with contracts set to begin in September. Meanwhile, two major Chinese shipping companies have halted oil tanker transits through the Strait of Hormuz and the Bab al-Mandeb strait, opting instead to collect oil cargoes outside the Gulf. This strategic shift by China, coupled with Middle East tensions, is prompting an increased utilization of the Arctic's Northern Sea Route for container shipping to Europe, with China's Sea Legend set to launch a regular weekly service on this 'Ice Silk Road.' This route offers significantly reduced transit times compared to traditional passages through the Suez Canal or around the Cape of Good Hope, though Western shippers remain hesitant due to environmental concerns and geopolitical factors involving Russia, which manages navigation on the route.