Oil prices remained close to recent highs Thursday as traders watched tensions around the Strait of Hormuz. The market continues to weigh the outlook for the U.S.-Iran conflict and its impact on global energy shipments. Hormuz tensionsremain the central concern for investors as uncertainty surrounds shipping and possible diplomatic progress.
Brent crude for October delivery gained 25 cents, or 0.3%, reaching $91.87 a barrel by 0037 GMT. U.S. West Texas Intermediate for September delivery slipped two cents to $85.81. The more active October WTI contract added 14 cents, or 0.2%, to $84.53.
Both major benchmarks posted a fourth consecutive daily gain on Wednesday. Their settlements marked the highest levels since July 24. The September WTI contract also faces expiration Thursday, which could add some volatility to trading activity.
Market strategist Hiroyuki Kikukawa said sporadic attacks have helped keep crude prices elevated. However, the absence of a major escalation has limited fresh buying momentum. He expects prices to maintain a gradual upward path while uncertainty surrounds peace efforts and regional tensions.
Relations between Iran and the United Arab Emirates have also drawn greater attention. The UAE announced a suspension of financial and economic transactions with Iran until further notice. That decision adds another layer of uncertainty for a region that plays a crucial role in global oil supply.
The Strait of Hormuz remains the biggest immediate concern for energy markets. The narrow waterway handles a significant share of global oil shipments. Any prolonged disruption could tighten supplies and push crude prices higher, particularly if major shipping companies continue avoiding the route.
The conflicting statements from Washington and Tehran have added to that uncertainty. U.S. President Donald Trump said Tuesday that no negotiations were underway with Iran. He also said the Strait of Hormuz remained open. Iranian officials, however, said the waterway remained closed.
Shipping activity through Hormuz slowed further on Wednesday, according to market data. Many shipowners have chosen to stay away because authorities have not provided clear guidance on reopening the route. Hormuz tensionstherefore continue to influence freight decisions, supply expectations, and crude market sentiment.
U.S. inventory data offered a mixed signal for oil traders. The Energy Information Administration reported that domestic crude inventories increased by 4.4 million barrels during the week ending August 14. Analysts had expected a decline of about 600,000 barrels.
Gasoline inventories also increased during the period, while distillate stocks declined. The larger-than-expected crude build could limit some upward pressure on prices. Still, geopolitical risks remain powerful enough to keep traders focused on developments around the Gulf.
For now, oil markets appear caught between supply concerns and signs of weaker domestic inventory demand. Traders will closely monitor shipping movements and any changes in U.S.-Iran relations. Hormuz tensions could continue supporting crude prices if uncertainty persists or shipping disruptions deepen.
The coming sessions may therefore bring sharp price swings as investors react to developments on the ground. A clearer reopening of the waterway could ease supply fears and reduce the geopolitical premium. Further disruption, however, could send Brent toward new highs and increase pressure on fuel markets worldwide.