The fall in Brent and WTI prices is weighing on oil stocks, with Eni bringing up the rear on the Milan Stock Exchange
Saipem has stemmed the decline after securing two contracts in Italia and the Ivory Coast worth a total of around 800 million
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(Il Sole 24 Ore Radiocor) - Hopes of a thaw in relations between the United States and Iran are weighing on energy prices and, in turn, on the performance of energy shares. Consequently, in Milan, Eni , which has fallen by more than four points, and Tenaris , down by more than one and a half points, whilst Saipem is limiting the damage, having secured two contracts in Italia and the Ivory Coast worth a total of around 800 million.
On other European stock markets, TotalEnergies (-2.71%) is the worst-performing share in Paris, whilst Repsol is down 2% in Madrid, Shell 1.96% in Amsterdam and BP 3.41% in London. This comes in the wake of a slump in crude oil prices, with Brent down 6.17% at $90.83 per barrel and WTI down 5.77% at $84.16 per barrel.
Over the weekend, US President Donald Trump suspended plans to step up military operations in Iran, in order to “make way for diplomacy”, as confirmed by the US Ambassador to the United Nations, Mike Waltz. Furthermore, Tehran has informed mediators from Pakistan and Qatar that it is willing to resume negotiations.
“The ceasefire in the bombings and reports of progress in the negotiations have fuelled expectations of a return to a path of détente, which could lead to a resumption of oil flows,” explain analysts at Mst Marquee. However, the resumption of transit through the Strait of Hormuz “is likely to be slow and partial, as many shipowners remain cautious and require further evidence of the safety of this shipping route”.
Despite the suspension of attacks, fewer than 10 cargo ships passed through the Strait of Hormuz each day over the weekend, according to data from Kpler. Furthermore, yesterday, shipping traffic through the Bab el-Mandeb Strait fell after the Yemeni Houthis attacked Saudi oil facilities along the Red Sea coast. For operators, the situation therefore remains highly uncertain.
