Oil prices rise as Lebanon war rages and Hormuz traffic slows | Shipping News

Brent crude fluctuates after oil, LNG tankers cross the troubled waterway.

Oil prices have also started to rise as the agreement between the United States and Iran is in jeopardy.

Brent crude, the global benchmark, rose 0.65 percent on Friday, after falling to 0.9 percent earlier in the afternoon, as traders continued to assess the impact of the US-Iran memorandum on ending their conflict and reopening the Strait of Hormuz.

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Brent futures for August delivery were at $80.37 as of 06:30 GMT, taking the benchmark above $80 for the first time since Wednesday, after the previous slide was fueled by a rise in commercial ships carrying energy through the river.

It comes later Israel launched a series of attacks in Lebanon, killing 16 people and threaten the ceasefire agreement between the US and Iran.

Clashes between Israel and Hezbollah forces in southern Israel on Friday killed four Israeli soldiers, according to Israeli media.

A planned meeting between US and Iranian officials in Switzerland has been canceled, reportedly because of the protests, although the Strait of Hormuz appears to be open to shipping.

The Japanese and South Korean markets also had a volatile trading session.

Seoul’s Kospi rose more than 2.5 percent to hit an all-time high after the market opened, before falling as much as 1.8 percent before returning to a 0.8 percent gain.

Tokyo’s Nikkei 225, which rose about 0.6 percent after the market opened, was 0.08 percent in the red.

Stock markets in Shanghai, Hong Kong and Taipei were closed for the day.

Three Saudi Arabian-flagged oil tankers carrying about 6 million barrels left the Strait of Hormuz on Thursday, airing their position after weeks in the Gulf after their transponders were turned off, according to maritime research firm Kpler.

The Hong Kong-flagged tanker Tong Lin Wan and the French LNG tanker Mraikh also passed through the waterway on Thursday, according to dispatches.

Despite the traffic, the traffic on the waterway remains a little less than it was before the war, when the route saw 120-130 trips a day.

More than 500 ships are expected to leave the Gulf through the canal, which in peacetime carries a fifth of the world’s oil.

While Iran and the US have pledged to reopen the river, ship operators have expressed doubts about the safety of their ships and crew after four months of threats and attacks.

At least 46 attacks have been carried out against ships near the channel since the conflict began in late February, killing 14 sailors, according to the International Maritime Organization.

The coast is also believed to contain a large number of unidentified Iranian military mines, requiring a mine-sweeping operation that could take several weeks.

On Thursday, the International Association of Independent Tanker Owners (INTERTANKO), one of the world’s largest organizations representing tanker owners and operators, called for clarity on what is needed to ensure safe navigation in the waterway.

“Without clarity on this matter, ships will be uncertain whether they will pass through the Strait of Hormuz,” INTERTANKO Director Tim Wilkins said in a statement.

“Some ships will start running. It will be natural. But ship owners will take a very cautious approach,” Wilkins said.

“The safety and security of mariners has always been at the top of their minds, and no one wants to jeopardize their first line of defense when things seem to be going well.”