Tanker crossings in the Strait of Hormuz and Bab el-Mandeb remained subdued at the start of this week despite reports about potential renewal of peace talks based on statements made by President Donald Trump.
A dozen tankers crossed the Bab el-Mandeb Strait on Monday, Kpler data cited by Reuters showed. Most of the vessels had their transponders on, meaning they were not trying to cross the strait undetected. Meanwhile, over in the Strait of Hormuz, only three tankers crossed on Monday, down from seven on Sunday, according to the Kpler data.
President Trump’s claims of renewed interest in peace talks pressured oil at the end of last week and into this week, but earlier today prices reversed direction as traders began to doubt the veracity of these claims and the chances of peace getting agreed. Doubts likely strengthened following reports that the U.S. Central Command was looking for new ideas on how to pressure Iran.
First reported by CNN, the news cited a CENTCOM officer sending a message to military analysts saying “We are looking for new creative and unconventional ways to pressure and punish Iran.” The report suggests the U.S. military is not necessarily preparing for peace.
Iran, meanwhile, appears to have bet on causing economic pain for the United States by blocking vital energy trade routes. It is working, too, with oil prices higher than President Trump would have liked and gas prices back above $4 per gallon just three months before the midterm elections.
On Monday, President Trump slammed Big Oil for “making too much money”, telling media in the Oval Office, “When you look at one company where they made 12 times what they made the year before, they ought to give some of that back to the public,” and adding that “And they better cut the retail price, the consumer price.”
By Irina Slav for Oilprice.com
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