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Oil edges toward $100 as Iran risk premia rise

Transits through the Strait of Hormuz have stayed in single digits all week as US President Trump’s “economic warfare” push against Iran lifts geopolitical risk in oil markets.

Reported · Written up by our desk · Energy

Oil prices moved closer to the $100-per-barrel mark as geopolitical risk related to Iran increased, with market participants citing near-standstill traffic through the Strait of Hormuz. OilPrice said transits through the chokepoint have been in single digits for the entire week, while ICE Brent traded around the mid-$90s.

OilPrice also pointed to an “economic D-Day” campaign announced by US President Trump, which the outlet said is aimed at countries trading with Iran and is raising geopolitical risk premia across energy markets. The piece linked the tighter outlook to crude pricing and broader shipping and fuel-cost pressures.

In Asia, the outlet noted Asian LNG prices around $24 per MMBtu and said VLCC freight rates were at very high levels. It added that the gradual upward move toward $100 during the remaining days of August is expected to continue, based on current momentum.

The story further outlined supply and route developments that could affect near-term flows, including US refiners receiving more than 500,000 b/d of Venezuelan crude as Venezuela’s output nears 1.25 million b/d, and Iraq’s plans to expand output toward 8–10 million b/d over six years if export routes and OPEC constraints allow. OilPrice also said Baghdad approved a 3-month contract to open new routes around Hormuz.

Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%

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