Hormuz Uncertainty Sends Oil Prices Reeling
Oil prices remain volatile as investors weigh conflicting signals surrounding a potential agreement between the US and Iran over control of the Strait of Hormuz.
The key waterway, through which about one-fifth of global oil supplies pass, has been a focal point of tensions in recent weeks. On Wednesday, US President Donald Trump stated that 'the US had total control' over the strait, casting doubt on the prospects of an immediate agreement to reopen the critical shipping route.
This assertion was at odds with comments from Pakistan's defense minister, who suggested that Washington and Tehran are 'close to some sort of arrangement' regarding the Strait. The contradictory signals have left investors uncertain about the future direction of oil prices.
In related news, data showed US crude inventories increased by 9.1 million barrels last week, marking their biggest weekly rise since February.