Oil Prices Rise Amid Hormuz Flows and Iran Sanctions Uncertainty
Oil prices have edged higher due to improved flows through the Strait of Hormuz and ongoing uncertainty over potential US sanctions on Iran. The international benchmark Brent crude futures for December delivery increased by 0.3% to $98.32 per barrel at 09:59 a.m. local time (06:59 GMT), up from $98.03 at the previous close.
US President Donald Trump stated that large volumes of oil are currently passing through the Strait, easing concerns over a prolonged disruption in one of the world's key oil transit routes. He also mentioned that oil prices would begin to decline due to increased flows through the strait.
However, market participants remain uncertain about the scope and timing of potential US sanctions on Iran, which continues to support prices. The US Treasury added 10 individuals and companies from various countries to its sanctions list over alleged ties to the Iranian military on Tuesday.