TOKYO: Oil markets stayed on edge Thursday as the prolonged U.S.-Iran conflict and uncertainty around the Strait of Hormuz raised fresh concerns about disruptions to global energy supplies.
Brent crude futures for October delivery rose 26 cents, or 0.28%, to $91.87 a barrel by 0439 GMT. U.S. West Texas Intermediate crude for September gained 17 cents to $86, while the more-active October contract rose 12 cents, or 0.13%, to $89.91.
Both benchmarks were heading for a fifth consecutive session of gains after settling Wednesday at their highest levels since July 24. The September WTI contract expires Thursday.
“Oil prices remained elevated as the market is supported by sporadic attacks in the Middle East but lacks fresh momentum without a major escalation,” said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment.
“The market is likely to maintain a gradual upward trend given uncertainty over peace talks and tensions involving the United Arab Emirates, Oman and Iran,” he said.
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The latest market pressure followed the UAE’s decision to suspend all financial and economic transactions with Iran until further notice, adding to concerns over regional stability and energy flows.
The Strait of Hormuz remains at the center of those concerns. Before the conflict began Feb. 28, about one-fifth of global oil consumption moved through the strategic waterway. Shipping traffic has since dropped sharply as operators remain cautious about using the route.
U.S. President Donald Trump said Tuesday that no talks were taking place with Iran and that the Strait of Hormuz was open. Iran, however, said the waterway remained closed.
The conflict has also disrupted refined fuel supplies. U.S. distillate inventories, which include diesel and heating oil, fell for a third consecutive week, according to the Energy Information Administration.
Crude inventories moved in the opposite direction, rising by 4.4 million barrels in the week ended Aug. 14, compared with analysts’ expectations for a 600,000-barrel decline.
Despite the increase in crude stocks, geopolitical uncertainty continued to support prices. Traders are now watching diplomatic efforts and developments around the Strait of Hormuz for signs of whether supply disruptions will worsen or ease.
