Oil Prices Edge Higher Amid Strait of Hormuz Tensions

Oil prices rose slightly this week after the US indicated it could maintain pressure on Iran for an indefinite period, keeping supply concerns alive.

The Strait of Hormuz, which handles around 20% of global oil shipments, remains a key chokepoint in the region. The US has stated that it can keep a naval blockade in place indefinitely, and reports of attacks on vessels transiting the strait have reinforced traders' worries about supply disruptions.

This has led to an 'insurance premium' being built into near-term crude prices, with Brent hovering near $87 per barrel. Despite weakening demand signals, the market remains concerned about potential disruptions at key shipping lanes.