Oil Rises for Fourth Day; US-Iran Standoff Keeps Prices Elevated
Oil prices strengthened for the fourth consecutive day in Wednesday's trading, as there were no signs of progress toward resolving the US-Iran conflict. WTI rose above US$85 per barrel following a gain of approximately 4.5% over the previous three sessions, while Brent held above US$91 per barrel.
Tensions between Washington and Tehran have left the status of the Strait of Hormuz uncertain. President Donald Trump confirmed that no talks are currently underway with Iran, while vessel traffic through the strategic waterway remains severely limited. This situation sustains market concerns regarding potential energy supply disruptions from the Persian Gulf.
The United States also plans to ramp up economic pressure on Iran while maintaining a blockade of the country's ports. US Treasury Secretary Scott Bessent signaled that a new, tougher sanctions package could be announced this week to pressure Tehran into acceding to Washington's demands.
Geopolitical risks have intensified after the United Arab Emirates announced it would suspend all trade and financial transactions with Iran amidst regional escalation. Meanwhile, the Russia-Ukraine conflict has further tightened energy markets; attacks on refineries and disruptions to refined product exports have squeezed global diesel supplies.
Regarding inventories, the American Petroleum Institute reported a decline in US crude oil stocks, including at the Cushing, Oklahoma hub. Distillate inventories—which include diesel—also reportedly fell. Tight supplies of refined products have caused US diesel refining margins to surge to an all-time high.
Newsmaker Analysis: Oil momentum remains bullish as long as US-Iran diplomacy stays deadlocked, the Strait of Hormuz fails to return to normal, and energy stocks continue to decline. Should geopolitical pressures mount, Brent could hold above US$91 and test higher levels. However, the rally could stall if Gulf export flows improve or if new US sanctions fail to trigger additional supply disruptions. (asd)*
Source: Newsmaker.id
