Crude oil prices started the week higher after Iran said the Strait of Hormuz would remain closed until the United States meets six sweeping demands for a peace deal, while Yemen’s Houthis claimed they had attacked an Aramco refinery in Jazan.
At the time of writing, Brent crude was trading at $84.24 per barrel, while West Texas Intermediate stood at $78.70. Both benchmarks have eased from their spring peaks but remain well above pre-war levels.
Iran’s demands include the withdrawal of U.S. forces from around Iran, a permanent peace agreement, compensation for war damages and sanctions relief, including the release of frozen Iranian assets. The Trump administration is unlikely to accept terms that could carry significant political costs, suggesting the Strait may remain closed and energy prices elevated.
Tensions are also rising around Saudi Arabia’s Red Sea coast. The Houthis claimed they targeted Aramco’s 400,000-barrel-per-day Jazan refinery with a drone. The refinery was shut down in late July after another Houthi attack, with Aramco previously saying it expected normal operations to resume by mid-August.
The Houthis have also targeted Saudi ports along the Red Sea, threatening the kingdom’s alternative export routes for crude and refined fuels. The latest reported attack targeted Yanbu, a major hub for Saudi oil exports, as well as a port controlled by Yemen’s internationally recognized government, which is backed by Saudi Arabia.
Note by Alessandro Bazzoni