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WTI rises above $84.50 as Strait of Hormuz tensions escalate
The move comes alongside a 4.4 million-barrel weekly increase in US crude inventories, while distillate stocks fell by 1.5 million barrels to a one-month low, according to US EIA data cited by FXStreet.
WTI crude prices climbed, trading around $85.50 per barrel during Asian hours on Thursday, after holding modest losses the prior day, FXStreet reported. The rise followed renewed concerns that escalating Middle East tensions are widening into the Strait of Hormuz, a key chokepoint for global oil flows.
FXStreet said negotiations between the United States and Iran remained stalled, while President Donald Trump noted oil shipments were still moving through the passage and left open the possibility of future talks. The regional backdrop also intensified after the United Arab Emirates suspended financial and economic transactions with Iran following alleged ballistic missile attacks on its territory.
Despite the elevated risks, Gulf producers are reportedly sustaining substantial export volumes by using alternative transport routes and discreet shipping methods, according to FXStreet. TD Securities warned that further ship attacks, greater escalation threats, and stalled talks leave the energy market at an elevated risk of supply disruptions, which could keep risk premia supported in Brent and refined products, the outlet said.
On the US supply side, FXStreet cited Energy Information Administration data showing domestic crude inventories rose by 4.4 million barrels last week, even as distillate stocks dropped by 1.5 million barrels to a one-month low. With supply and geopolitics both in focus, the outlet described crude market conditions as fragile as tensions continue to build.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%