OIL PRICE FALLS ON DEAL HOPES
Oil prices fell on Friday and Asian stocks headed for a second week of strong gains on optimism the Middle East conflict could be nearing an end, even though the critical Strait of Hormuz, an artery for a fifth of the world’s oil and gas supply, remains effectively closed.
The MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.8 per cent as investors locked in profits after a blistering rally this month, with the index close to its highest since the Iran war broke out and almost all stock markets back to pre-war levels.
Brent crude futures declined to US$98.53 a barrel at 7.28am GMT while US West Texas Intermediate crude futures fell to US$93.59 a barrel, trimming gains from the previous session.
France and Britain will chair a meeting on Friday of around 40 countries aimed at signalling to the United States that some of its closest allies, many chided by Trump for failing to act, are ready to help restore freedom of navigation in the Strait of Hormuz once conditions allow.
Iran has largely closed the strait to ships other than its own and Washington this week imposed a blockade on ships entering or leaving Iranian ports. Analysts said the blockade could prevent roughly 2 million barrels per day of Iranian crude from reaching China, its primary buyer.
Only a trickle of vessels have passed through the strait since the war started, compared to an average of 130-plus each day before the conflict.