Hormuz Uncertainty Persists as Oil Markets Hold Steady

The uncertainty surrounding the Strait of Hormuz continues to impact oil markets as conflicting analysis from the US and Iran persists. The waterway's status remains unclear, with President Trump stating there are no ongoing negotiations with Iran and that the Strait is open, while Iran maintains that there are restrictions in place.

With the end of the ceasefire on August 17, there is now no clear diplomatic path for the restoration of Gulf exports. As a result, producers and buyers are adapting to constrained Gulf shipping by exploring alternative export routes and changing tanker patterns.

The oil market is holding steady in response to these disruptions. WTI crude oil remains technically bullish above $83.79, with resistance levels at $86.87 and $90.56. Brent crude oil also holds its ground above $90.17, with key moving averages in focus for buyers.

In the natural gas market, fundamentals are better than in other regions, with production in the Lower 48 averaging around 108.5 Bcf/d in August, an increase from July's record. Inventories are also higher than normal, providing a significant buffer against demand fluctuations.