Brent at $108 as President Trump weighs Iranian transit proposal
Oil prices just shot up to $108 a barrel for Brent crude, while WTI is near $97, thanks to rising tensions between the US and Iran.
President Trump is considering an Iranian proposal that could calm things down, mainly by lifting the blockade, creating a new legal framework for transit through the Strait of Hormuz, and guaranteeing no future military attack.
But for now, the situation has everyone on edge, especially since the crucial Strait of Hormuz is near-zero, making it harder for oil and gas shipments to get through.
Hormuz slowdown tightens global energy supplies
With fewer ships moving through the Strait of Hormuz, global energy supplies are tight, so prices at the pump and even everyday goods could get pricier.
Goldman Sachs has raised its Q4 forecast, while Morgan Stanley sees oil averaging $110 a barrel this quarter, $100 in the next, and $90 in Q4.
The back-and-forth over control of this key waterway keeps markets guessing, so expect some uncertainty ahead.