Oil Prices Rebound as Strait of Hormuz Flows Ease

Crude oil prices have rebounded after concerns over supply disruptions through the Strait of Hormuz eased. International benchmark Brent crude futures rose 0.3% to $98.32 per barrel on Thursday, while US benchmark West Texas Intermediate (WTI) crude futures increased 0.1% to $90.53 per barrel.

The rebound follows comments from US President Donald Trump that large volumes of oil are passing through the Strait of Hormuz, a key oil transit route. This has helped alleviate concerns over a prolonged disruption in oil supply. Trump also stated that oil prices would begin to decline due to increased flows through the strait.

US Energy Secretary Chris Wright noted record production levels at US refineries and announced additional diesel supplies coming from Europe, which could put downward pressure on diesel prices. Meanwhile, uncertainty over potential US sanctions on Iran continues to support prices as market participants closely monitor developments surrounding the sanctions and their impact on Iranian crude exports.