Brent Crude Holds Near Four-Week Highs Amid Ongoing Strait of Hormuz Tensions

Oil prices have steadied near four-week highs, with Brent crude trading around $93.5 per barrel and WTI at $86.5 after a strong week of gains. The unresolved US-Iran conflict continues to keep Middle East supply risks elevated, particularly in the Strait of Hormuz where only seven commodity vessels crossed on Thursday.

The market is pricing in the possibility that reduced Gulf exports from producers like Saudi Arabia, Iraq, and the UAE could persist if shipping conditions don't normalize. Tony Sycamore, an analyst at IG, sees Washington and Tehran as increasingly entrenched, leaving crude vulnerable to further gains.

Disruption now spans both Hormuz and the Red Sea, with Yemen's Iran-backed Houthis claiming they targeted eight Saudi oil tankers between July 20 and August 19. While these claims haven't been independently verified, they underscore the caution around Bab el-Mandeb as well as Hormuz.