MUSCAT: The official price of Oman crude for September delivery surged by $10.06 on Tuesday to $82.17 a barrel, tracking a sharp rally in global oil markets as renewed tensions between the United States and Iran raised concerns over crude shipments through the Strait of Hormuz.
The latest price compares with Monday's settlement of $72.11 a barrel. The average price of Omani crude for July delivery stood at $102 a barrel, down $2.73 from the average recorded for June deliveries.
International benchmark Brent crude climbed 3.81 per cent to $86.47 a barrel in early trading, its highest level in four weeks, while US West Texas Intermediate (WTI) crude rose 2.75 per cent to $80.29 a barrel.
Oil prices were supported by renewed geopolitical risks after the United States reinstated a naval blockade of Iran and exchanges between Washington and Tehran intensified, fuelling fears of disruptions to energy supplies moving through the Strait of Hormuz.
The waterway is one of the world's most important energy corridors, carrying around one-fifth of global oil and liquefied natural gas shipments before the latest escalation.
Market sentiment was also affected by reports that tanker traffic through the Strait of Hormuz had fallen to its lowest level in two months.
Analysts said the renewed tensions have prompted traders to factor in a higher geopolitical risk premium.
Soni Kumari, an analyst at ANZ, said markets were reassessing the durability of the recent understanding between the United States and Iran.
She said further disruptions could keep oil prices in the $85-$90 a barrel range.
Citi also said the possibility of Iran stepping away from the memorandum of understanding before the US mid-term elections had increased, a scenario that could support higher oil prices for longer.
Despite the heightened tensions, Iranian Oil Minister Mohsen Paknejad said the country's crude exports continued as normal despite the cancellation of a temporary US sanctions waiver last week. — Agencies
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