US-Iran Tensions Fuel Oil Price Gains Amid Surprise Inventory Build
Oil prices rose on Friday due to renewed tensions between the US and Iran, which revived concerns over oil flows through the Strait of Hormuz. The geopolitical risk was partly offset by a sharp increase in US commercial crude inventories.
Brent crude futures for October delivery traded at $87.92 per barrel, up 0.98% from the previous close of $87.07. West Texas Intermediate (WTI) crude futures for September delivery traded at $82.13 per barrel, up 1.08% from $81.25.
The Iranian Khatam al-Anbiya Central Headquarters rejected US claims of full control over the Strait of Hormuz as 'baseless lies,' stating that the strait remains under Tehran's control. The statement added that commercial vessels and oil tankers would not be able to safely transit the strait without the authorization and supervision of Iranian armed forces.
US Treasury Secretary Scott Bessent said Washington plans to impose unprecedented economic measures on Iran, combining increased economic pressure with restrictions related to the Strait of Hormuz. He stated that 'it will be a combination of economic isolation like the world has never seen before, and the continued blockade in the Strait of Hormuz that will keep anything from going in or out of the Iranian ports.'