Oil Prices Surge Amid US-Iran Standoff and Strait of Hormuz Tensions
Oil prices rose on Thursday due to persistent concerns over supply disruptions tied to the ongoing US-Iran standoff. Brent crude for October delivery ticked up 26 cents, settling around $91.87 a barrel, while September West Texas Intermediate (WTI) futures rose 17 cents to $86 a barrel.
The fifth consecutive session of gains for both benchmarks saw prices hovering near their highest marks since late July. The September WTI contract was set to expire later that day, adding to the market dynamics.
Ongoing skirmishes and geopolitical risks in the Middle East continue to support crude prices, even as the lack of a significant escalation tempers enthusiasm. Strategists note that uncertainty surrounding peace talks, as well as strained relations involving regional players like the United Arab Emirates (UAE), Oman, and Iran, keep the market on edge.
The UAE recently took the drastic step of suspending all economic transactions with Iran indefinitely, spotlighting deteriorating ties with this key Gulf player known for its oil production. While US President Donald Trump confirmed no ongoing negotiations with Iran and asserted the Strait of Hormuz remains open, Iranian authorities countered that the vital shipping route remains closed.