Tensions in Persian Gulf Keep Crude Prices Near $90

Crude oil prices are holding steady near $90 per barrel as tensions in the Persian Gulf continue to simmer. Despite Pakistan's defense minister signaling that a peace deal is nearing, incidents in the region have kept Brent Crude trading near the $89 mark.

The West Texas Intermediate is also trading above $83, after gaining 11% over the last four trading sessions. However, oil prices gave up some of their gains when Pakistan's defense minister told Bloomberg News that the US and Iran are close to 'some sort of agreement'.

Tensions in the region persist as a US Navy helicopter fired two Hellfire missiles at a Panama-flagged cargo vessel attempting to breach its blockade of Iranian ports. The UK Navy also reported an incident involving a container ship and military forces in the Gulf of Oman, and another incident where a Cargo vessel in Yemen's Red Sea coast was hit by an unknown projectile.

As the market remains 'very headline driven', according to Helge Andre Martinsen, senior oil analyst at DNB Bank ASA, it's 'hard to have any conviction'. Oil prices are still up over 40% for the year, despite cooling off from their late-April peak of around $125 a barrel for Brent.