00:00Oil gaining again after falling steeply on Monday.
00:03A barrel of Brent crude heading back towards $104 a barrel now after that 11% plunge following President Trump's
00:10comments.
00:10The concern now is that other countries will be drawn into the war with Iran.
00:15Let's bring in Antony DePaola, Bloomberg's Middle East Energy Markets reporter in Dubai.
00:20Antony, markets still very sensitive to every headline and of course even if there's de-escalation,
00:25there's still a bunging up in the Strait of Hormuz, right?
00:28What does it all mean for the prompt future of oil prices?
00:36Good morning, Vani.
00:37Yeah, I think the key thing is what Jumana had just said there, which is that the war is not
00:41over yet.
00:42And although we have these good signs which really led to a big sell-off yesterday,
00:46something like 10% dropping, Brent crude dropping below $100 a barrel,
00:52which is a big sell-off on the back of those initial comments from U.S. President Donald Trump,
00:59there was some added speculation with the Iranian denials,
01:03which could well be posturing on both sides as they jockey for a deal.
01:08And neither one wants to look like they've been the ones who are suing for peace,
01:14who have been beaten in this case.
01:17So it could be some jockeying there.
01:18But we did also see that reporting this morning,
01:20potentially that the Gulf countries were looking at taking a more aggressive stance.
01:23And that Gulf language has gotten stronger because the Gulf countries don't want to be in a situation
01:30where there is kind of an interim agreement and they are left with a more emboldened Iran.
01:37We do still have the Strait of Hormuz closed.
01:40That comes as Iran is using not very high-tech weaponry to close that Strait of Hormuz
01:50while it's under attack from two of the most advanced militaries in the world.
01:53So that does create an added risk.
01:55And I think what the oil price is looking at is the possibility of that closure being protracted,
02:01staying for longer.
02:02We even had Goldman Sachs commenting also on television about how a longer closure of Hormuz
02:10would lead to even higher prices down the road.
02:13So markets are really attuned to that, attuned to the issue as well of the infrastructure inside the Gulf.
02:19We've seen a lot of attacks already on key oil facilities, gas facilities, refineries.
02:26Some of those damaged, Qatar talking about several months to repair their LNG facilities
02:33that will affect supplies for years.
02:34So the longer that this takes, the more attacks there are on critical infrastructure,
02:41the longer then oil takes to recover and global economies take to recover.
02:45So we really do need to see a resolution.
02:49As the Ad Nox CEO was saying yesterday, the only real resolution is to get Hormuz opened.
02:55Ad Nox CEO was speaking to the Sierra Week conference in Houston,
02:59a huge gathering of all kinds of oil executives.
03:02And that was the main topic of the conference yesterday.
03:05What's happening with Iran?
03:07When's Hormuz going to be reopened?
03:08And when are we going to get that supply back to market, Vani?
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