Oil companies in the spotlight: Saipem and Eni shine in Milan

 (Il Sole 24 Ore Radiocor) - The latest rises in crude oil prices, triggered by the deadlock in negotiations in the Middle East, are bolstering European oil stocks. Consequently, on an otherwise weak Milan Stock Exchange (FTSE MIB), Saipem and Eni. Furthermore, the six-legged dog is also benefiting from ExxonMobil awarding contracts worth around $1.1 billion relating to the Rovuma LNG project in Mozambique, in which the Italian company is one of the partners. Turning our attention to the rest of the markets, TotalEnergies is among the top performers in Paris, as are Shell shares in Amsterdam and London. Also on the FTSE 100, BP is making gains, whilst Repsol is gaining ground in Madrid.

Today, oil prices have in fact been on an upward trend for the third consecutive trading session, with Brent crude once again surpassing the psychological threshold of $90 a barrel (at around $91 a barrel for North Sea crude and $85 for WTI), whilst hopes of an imminent peace between the US and Iran are fading. Tehran in fact intends to adopt a more aggressive stance, after the United States opposed an extension of the 60-day ceasefire between the two countries, which expired yesterday.

According to a senior official from the Islamic Republic who spoke to Reuters, diplomatic efforts have reached an impasse, and even the talks between Iran and Oman – which have been openly criticised in recent hours by Donald Trump – on the reopening of the Strait of Hormuz are progressing slowly. As a result, traffic through the strait remains at a minimum, fuelling fears over future crude oil supplies.

“Relations between the United States and Iran appear increasingly unstable,” said Tim Waterer, chief market analyst at Kcm. “An agreement to reopen the Strait of Hormuz does not yet seem to be on the horizon, and the number of ships passing through it remains low.” According to experts, this situation could have repercussions in the future as well: “The absence of any kind of agreement will have an impact on oil price expectations in the fourth quarter and even in 2027,” said Suvro Sarkar, head of energy research at DBS Bank. As long as uncertainty over the agreement persists, Sarkar predicts that prices will remain between 80 and 100 dollars a barrel in the short term.

The deadlock in the Hormuz negotiations is compounded by tensions in the rest of the Middle East and, in particular, in the Red Sea. The Yemeni Houthis claimed responsibility this morning for an attack on a Saudi military vessel and four escort ships in the area, according to their military spokesperson, Yahya Saree, on the Telegram messaging app. According to the local Saba news agency, the pro-Iranian group is also said to have attacked a Saudi Aramco refinery in Jazan, although no confirmation has yet been received from Saudi Arabia.