Oil edges up on uncertainty over exports through Hormuz

Business Recorder reported that oil prices edged higher in early trade on Wednesday, extending gains to a fourth straight session as traders weighed conflicting signals from Tehran and Washington on whether ships can pass the Strait of Hormuz. Brent crude futures rose 26 cents, or 0.29 per cent, to $91.28 by 0004 GMT, while West Texas Intermediate added 37 cents, reaching $85.31 per barrel. Both contracts settled on Tuesday at their highest since July 24, as hopes for peace between the United States and Iran weakened.

On Tuesday, US President Donald Trump said no talks were under way with Iran and maintained the strait was open, while Tehran insisted the waterway remained shut to shipping. A temporary ceasefire expired on Monday, though no fresh strikes by either side were reported on Tuesday. Iraq's cabinet approved new export arrangements that avoid the strait, with contracts running for three months from September 1. Separately, two Chinese shipping companies have halted tanker runs through Hormuz and the Bab al-Mandeb strait, collecting cargoes outside the Gulf instead.

In the US, American Petroleum Institute data showed crude and distillate stocks fell last week, while gasoline inventories rose. Energy Information Administration figures are due at 1430 GMT, and analysts polled by Reuters forecast a drop of roughly 600,000 barrels in crude inventories for the week ended August 14.