Dozens of ships pass through Strait of Hormuz, Brent and WTI crude prices edge lower

Oil prices are edging lower today after Iran said several dozen ships had passed through the Strait of Hormuz. North Sea Brent crude was down around 0,6 percent at about 17:00 CEST, trading just below 105 dollars a barrel. US light crude West Texas Intermediate (WTI) was losing around 0,5 percent and stood near 100,5 dollars a barrel.

About a fifth of the world’s oil supplies normally pass through the Strait of Hormuz. Shipping through the strait has been crippled, however, by the conflict in the Middle East, which began in late February with US-Israeli attacks on Iran.

Iran’s Fars news agency reported today that Iran had begun allowing some Chinese ships to pass through the Strait of Hormuz. Iran’s Revolutionary Guards later said that around 30 vessels authorised by Iranian authorities had passed through the strait since Wednesday evening.

In a statement today on a meeting between US President Donald Trump and his Chinese counterpart Xi Jinping, the White House said the two leaders agreed that the Strait of Hormuz must remain open to allow the free transport of oil and natural gas.

Brent crude prices fell by around two percent on Wednesday. This was partly due to concerns that the US Federal Reserve (Fed) could raise interest rates in response to rising inflation. That could have a negative impact on economic growth and fuel demand.

Oil prices in dollars per barrel (about 159 litres)