Iran News Updates

Rising energy and transport bills driven by the war in Iran are fueling worries about the cost of everyday pantry staples from bread to meat and dairy. 

Oil prices surged more than 3% after the U.S. strike on Aug. 30 broke a lull in fighting in a war that has lasted more than six months. Brent crude, the international standard, jumped 2.8%, to $90.59 a barrel.

U.S. allies, however, have privately warned that the strait, a key thoroughfare for Middle East oil, natural gas and fertilizer, was still likely mined.

The price for a barrel of Brent crude, the international standard, rose 0.2% on Aug. 28 to $88.68. Oil prices have been a wild card for inflation.

Aramco is now selling its heavier grades by moving them through Hormuz. Other Persian Gulf nations including Iraq and Qatar have also increased crude exports.

Oil prices are steady as talks between Iran and Oman on increasing energy flows in the Strait of Hormuz helped ease prices this week. Brent crude, the international standard, climbed 0.4% to $87.32 per barrel.

As the shape of the war has morphed over the past half year, so, too, have the goals. One of the prime goals now — reopening the Strait of Hormuz — was not one of Trump's original objectives. 

About 6 million to 8 million barrels a day of crude are now being shipped through the world’s key oil chokepoint, according to estimates from oil traders involved in and monitoring cargo activity.

The oil market is down as tensions have grown after the Trump administration announced new sanctions aimed at inflicting more pain on Iran’s economy. Brent crude dropped 0.7% to $86.66 a barrel.

Iranian officials have repeatedly warned that a deal with Oman on the strait’s navigation would not equate to an immediate re-opening of the waterway.