Oil prices rise further as U.S., Iran remain at odds over Hormuz

Oil prices continued to climb on Wednesday, entering a fourth consecutive day of gains, as the ongoing tensions between the United States and Iran in the Strait of Hormuz persisted. Benchmark Brent oil futures climbed 0.3% to $91.32 per barrel, while U.S. West Texas Intermediate crude futures rose 0.4% to $85.28 per barrel. The price surge came as tanker traffic through the Strait of Hormuz eased, heightening concerns over potential disruptions to global oil supplies.

The uncertainty surrounding the strait's status has raised alarms among analysts, who cited shipping data showing a decline in tanker traffic. Six tanker vessels passed through the Strait on Tuesday, down from nine the previous day, according to Reuters, which cited figures from Kpler. The 10-day average for vessel traffic also decreased, raising fears of a possible oil supply crunch.

In a bid to address Gulf security concerns, U.S. Secretary of State Marco Rubio spoke with the United Arab Emirates' National Security Adviser, Sheikh Tahnoon bin Zayed Al Nahyan, emphasizing the importance of maintaining freedom of navigation through the Strait of Hormuz. Despite this, U.S. President Donald Trump stated that no talks with Iran were taking place, and that the strait remained open.

Iran, however, denied U.S. claims and asserted that the chokepoint would remain closed until the U.S. meets its conditions, as a result of an expired interim deal signed in June.

Adding to the upward momentum for oil prices, data from the American Petroleum Institute revealed a slight decline in U.S. inventories last week. This trend typically foreshadows a similar situation in official inventory data, due later on Wednesday. The ING analysts noted that the oil market benefited from the slightly bullish API inventory report, signaling tighter supplies in the U.S. as the nation's Strategic Petroleum Reserve dipped to its lowest level in over four decades due to the ongoing Iran conflict.