Over 4,000 Indian seafarers repatriated from West Asia amid conflict, says Centre

Oil prices edged higher on Tuesday, recovering slightly from a three-week low after a sharp drop the prior day. The rebound came amid ongoing concerns over the security of the Strait of Hormuz, a critical chokepoint for global oil exports. Brent crude climbed $0.49, or 0.58%, to $84.26 a barrel, while West Texas Intermediate (WTI) crude rose $0.41, or 0.51%, to $80.75 a barrel around 7:20 am IST. This modest gain followed a steep 7% decline on Monday, which sent prices to their lowest level in three weeks. The recent price movement was influenced by statements from U.S. President Donald Trump, who announced a temporary halt to new military actions against Iran. His comments came as diplomatic efforts aimed at resolving the dispute over the Strait of Hormuz continued. The waterway, which handles approximately one-fifth of the world’s daily oil consumption, has become a focal point of geopolitical tension. However, the situation remains unresolved, with Iran dismissing Trump’s remarks. Iranian Foreign Ministry Spokesman Esmail Baghaei stated that no discussions with Washington were underway and that no formal meetings had been scheduled, directly contradicting the administration’s claim of ongoing negotiations. The dispute over the control of the Strait of Hormuz remains a central issue. The United States asserts that an agreement signed in June obligates Iran to reopen the passage, while Tehran contends that the document preserves its sovereignty over the area. These conflicting interpretations have contributed to persistent uncertainty in the region, keeping markets on edge. Shipping activity near the Strait of Hormuz has shown signs of shifting. According to Barclays analysts, crude and refined product exports through the strait averaged 4.2 million barrels a day in the week ending July 31, up from 3.2 million barrels a day the previous week. Additional data revealed that six Saudi-flagged supertankers recently changed course, diverting toward southern Africa instead of passing through the Gulf of Aden. Meanwhile, two vessels transporting Saudi crude successfully navigated the Bab el-Mandeb Strait, indicating some degree of rerouting due to heightened security concerns. Further complications emerged as traffic through the Strait of Hormuz between Iran and Oman slowed following reports of attacks on commercial vessels. On Tuesday, the United Kingdom Maritime Trade Operations received a report from a cargo ship that claimed it had been hit by an unidentified projectile approximately 20 nautical miles northeast of Oman’s Al Khasab. Such incidents have reinforced fears of potential disruptions to oil flows, even as military operations have temporarily paused. Market observers noted that while the recent price increase suggests some stabilization, the underlying risks persist. Tim Waterer, chief market analyst at KCM Trade, remarked that although the immediate pressure on oil prices has eased, the situation remains volatile. He warned that prices could either rise further if hostilities resume or fall again if additional attacks occur. Despite the upward trend, current levels still lag behind the earlier peak of $126 per barrel seen during the last major price surge. Separately, reports indicate that Iran is considering including provisions in a potential peace agreement that would restrict the passage of U.S. and Israeli vessels through the Strait of Hormuz. This proposal underscores the deepening divide between Tehran and Western powers, adding another layer of complexity to already fraught negotiations. As these developments unfold, the outlook for global oil markets continues to hinge on the resolution of regional tensions and the stability of key maritime routes.