Symbolic imageOil back above $80 and gold at seven-week high as Hormuz talks continue
Brent swung back above $80 a barrel on Thursday and gold reached a seven-week high as traders priced in a possible reopening of the Strait of Hormuz. US stocks fell on doubts the deal would land.
What happened
- Brent October futures rose 2.2 to 3.1 percent on Thursday, 6 August, quoted at $81.23 by The National and $81.91 by TASS.
- WTI September futures gained 1.8 to 2.5 percent, put at $76.56 and $77.10 by the same two outlets.
- Spot gold traded 0.45 percent higher at $4,263.67 an ounce, its strongest level since 18 June.
- Iran's foreign ministry spokesman said a day earlier that Iran and Oman were finalising a safe shipping route after two months of talks.
- Saudi Arabia cut its main crude price for Asian buyers, Bloomberg reported.
The view from outside
Indian and Russian outlets report the same session without the diplomacy: The Hindu ties a 374-point Sensex gain to cheaper crude and buying in Reliance and ICICI Bank, while TASS carries only the exchange data.
What could happen next
- Bloomberg reported on Friday that oil extended gains as Iran struck targets in the strait, cutting against the reopening case.
- Sources told The National that Tehran wants sanctions relief in exchange for toll-free passage, an unconfirmed condition that could stall the draft.
- Asian government bonds fell on Friday as oil rose, according to WSJ, which reported US Treasury yields edging up a day earlier.
- Gold is still down 19 percent since the war with Iran began on 28 February.
How the camps see it
Iran: Says a safe-route deal with Oman is nearly drafted, while Bloomberg reports it struck targets in the strait on Friday.
Saudi Arabia: Lowered its main crude price for Asian buyers as talk of a reopening spread, according to Bloomberg.
Also involved