Trump's Strait of Hormuz Comments Spark Oil Price Bump Amid Iran Sanctions Uncertainty

Oil prices edged higher on Thursday as improving flows through the Strait of Hormuz eased supply concerns. This came after US President Donald Trump said large volumes of oil were currently passing through the strait, easing concerns over a prolonged disruption in one of the world's key oil transit routes.

Trump also stated that oil prices would begin to decline due to increased flows through the strait. US Energy Secretary Chris Wright pointed out record production levels at US refineries and announced additional diesel supplies coming from Europe, which could put downward pressure on diesel prices.

However, uncertainty over potential US sanctions on Iran continued to support prices. The US Treasury added 10 individuals and companies to its sanctions list for alleged ties to the Iranian military on Tuesday, fueling market concerns about the impact of sanctions on Iranian crude exports.