Oil prices steady as investors assess US-Iran war outlook

Oil prices held steady on Thursday as traders weighed the potential for a U.S.-Iran conflict and the safety of maritime routes through the Strait of Hormuz. Brent crude futures for October delivery increased by 25 cents, or 0.3%, reaching $91.87 per barrel, while U.S. West Texas Intermediate crude futures for September fell by 2 cents to $85.81 per barrel.

The October WTI contract gained 14 cents, or 0.2%, to $84.53, marking its fourth consecutive day of gains. Analyst Hiroyuki Kikukawa of Nissan Securities Investment noted that oil prices were buoyed by intermittent Middle Eastern clashes but were lacking in momentum without a significant escalation. He also pointed out that the market would likely continue its steady upward trajectory due to the ongoing uncertainty surrounding peace talks and tensions among the United Arab Emirates, Oman, and Iran.

The United Arab Emirates' recent decision to halt all financial and economic dealings with Iran has reignited discussions about the strained relationship between the two Gulf oil giants. On Tuesday, U.S. President Donald Trump stated that no negotiations were underway with Iran, while Iran claimed the Strait of Hormuz remained closed.

Shipments through the Strait of Hormuz were reported to be slowing down on Wednesday, with most shipping companies avoiding the critical waterway due to the absence of clear guidance on its reopening following the Iran war. According to the Energy Information Administration, U.S. crude inventories increased by 4.4 million barrels last week, surpassing expectations of a 600,000-barrel reduction.