Oil Prices Surge Amid Ongoing US-Iran Tensions
Oil prices continued their upward trend on Wednesday, rising for a fourth consecutive session as tensions between the US and Iran over the Strait of Hormuz remained high. West Texas Intermediate crude futures increased by 0.45% to $85.32 a barrel.
The standoff in the strategic waterway has led to concerns about global oil supplies, with commercial transit through Hormuz remaining at a fraction of pre-war levels. This is despite US President Donald Trump's claim that Hormuz remained open.
Iran had denied any talks with the US and said the key waterway would remain shut until certain conditions were met, including the renewal of an interim deal signed in June. However, neither Washington nor Tehran has shown any intent to revive the ceasefire, which lapsed this week.
The data from the Energy Information Administration showed a small contraction in US inventories last week, which is typically followed by a similar trend in official inventory data due later on Wednesday. Shrinking US inventories point to tighter supplies in the country, especially after recent data showed the US Strategic Petroleum Reserve shrank to its lowest level in over 40 years due to the Iran war.