Oil price today: Crude remains above $90 as Hormuz operations remain disrupted

Oil prices have remained above $90 per barrel on Thursday, with traders closely monitoring the situation in the Middle East and the status of shipping through the Strait of Hormuz. At 7:30 am IST, West Texas Intermediate (WTI) crude was trading at $84.66 a barrel, a gain of 27 cents or 0.32% from the previous day, while Brent crude stood at $92, up 38 cents or 0.41%.

Both benchmarks had reached their highest levels since July 24, bolstered by sporadic attacks in the region and market sentiment, although a major escalation had not yet occurred.

The suspension of all financial and economic transactions between the United Arab Emirates (UAE) and Iran, announced by UAE, has raised concerns about the relations between the Gulf Arab oil producer and Iran. The Strait of Hormuz, a vital waterway for global oil trade, is also a key concern for the market. Despite US President Donald Trump stating that no talks are taking place with Iran and that the strait remains open, Iran has claimed that it is still closed.

Data released on Wednesday indicated that shipping through the Strait of Hormuz had slowed, with most shipowners avoiding the crucial waterway due to the lack of clear signals on its reopening following the recent blockade imposed during the Iran war. The Energy Information Administration (EIA) reported that crude and gasoline inventories had risen last week, with crude inventories increasing by 4.4 million barrels in the week ended August 14, which was higher than the expected 600,000-barrel draw.