Oil prices rise further as Iran, U.S. remain at odds over Hormuz
Oil prices rose for a fourth consecutive session on Wednesday as the U.S.-Iran standoff in the Strait of Hormuz showed few signs of ending soon, which in turn spurred bets on global supplies remaining tight in the coming months.
Brent oil futures rose 0.76% to $91.71 a barrel by 00:15 ET (04:15 GMT), while West Texas Intermediate crude futures rose 0.8% to $84.73 a barrel.
Oil clocked strong gains this week, with Brent and WTI futures hitting a near three-week high as the U.S. and Iran remained at odds over Hormuz.
Trump says no Iran talks taking place
U.S. President Donald Trump said on Tuesday that talks with Iran were not taking place, and that no dialogue was scheduled. But Trump also said Hormuz remained open.
Iran had earlier asserted that no talks with the U.S. were taking place. The country also denied U.S. claims on Hormuz’s opening, and said the key waterway would remain shut until the U.S. met the conditions of an interim deal signed in June.
The deal lapsed this week, with neither Washington nor Tehran signaling any intent to renew the ceasefire.
Trump earlier this week threatened to bomb Oman over its negotiations with Iran, and also reiterated his calls for Iran to acquiesce to the United States.
Shipping data showed commercial transit through Hormuz remained at a fraction of pre-war levels, pointing to continued disruptions in global oil supplies. Roughly a fifth of the world’s oil consumption passed through Hormuz prior to the conflict.
U.S. inventories seen shrinking last week- API
Adding to oil’s upward momentum, data from the American Petroleum Institute showed a small contraction in U.S. inventories last week.
The print usually heralds a similar trend in official inventory data, which is due later on Wednesday.
Shrinking U.S. inventories point to tighter supplies in the country, especially after recent data showed the U.S. Strategic Petroleum Reserve shrank to its lowest level in more than 40 years due to the Iran war.
Data last week showed a sharp, unexpected jump in U.S. crude inventories, largely due to prolonged weakness in oil exports.
