The Houthis Said They Struck a Saudi Tanker In The Red Sea Despite U.S.-Iran Talks. Brent Crude Is Up
Yemen’s Houthi rebels said they again struck a Saudi tanker in the Red Sea as they continue to enforce what they have described an embargo on the country’s oil in the region.
The group said the incident took place near the coast of Yanbu, a major port for Saudi oil. Prices increased moderately on Wednesday. Brent crude, the international benchmark, climbed less than 1% but went back above $80 a barrel at 9:31 a.m. ET, while West Texas Intermediate, was edging down and declined 0.24%, hovering below $76 at the same time.
However, most of the focus is on whether the Strait of Hormuz will reopen as a result of ongoing talks.
President Donald Trump said the U.S. is having “very good discussions” with Tehran and a deal could be announced imminently.
Speaking to press on Tuesday night, Trump said “a lot of progress has been made” and the key waterway is “going to be open very soon.”
However, he again reiterated that if “hey back out again, they are going to get hit really hard.”
Earlier on Tuesday, U.S. Treasury Secretary Scott Bessent expressed optimism about the possibility of reaching a deal.
Asked whether Iran will be allowed to charge a toll for passage, as it has said it is willing to do, he was not specific but said the agreement would allow freedom of navigation in the waterway. “Even though things are still a little dicey there over the past few days, we saw quite a few ships coming out even now.”
Reuters detailed on Tuesday that Tehran is seeking to control inbound shipping through the Hormuz Strait and have oversight over outbound traffic.
Citing regional sources familiar with the matter, Axios detailed that the deal sets up a 60-day deal between Oman and Iran in the waterway. All inbound traffic would go through Iranian waters, while outbound traffic would go through Omani waters in coordination with Tehran.
No tolls or fees would be charged during that period, and parties would work to clear mines in the median lane within 30 days. After the median waterway is cleared, it would be used for both inbound and outbound traffic under a permanent deal to be negotiated between Iran and Oman.
