Oil prices steady as U.S.-Iran war, Hormuz risks keep market on edge

Mettis Global reported that crude prices stayed steady during early Asian dealings on Thursday, as traders kept an eye on the U.S.-Iran conflict and doubts about passage through the Strait of Hormuz. Brent crude futures rose 0.22 per cent to $91.69 a barrel, while WTI crude fell $0.24, or 0.28 per cent, to $84.35. Both benchmarks had gained for a fourth straight session on Wednesday, reaching levels last seen on July 24.

Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, quoted by CNBC, said the market was buoyed by scattered attacks across the Middle East yet lacked fresh drive absent a major escalation. He also flagged uncertainty over possible peace talks and mounting friction involving the UAE, Oman and Iran. Separately, the UAE halted all financial and economic dealings with Iran until further notice.

Conflicting statements on the strait continued. U.S. President Donald Trump said on Tuesday that no talks with Iran were under way and the route was open, while Iran insisted the waterway stayed shut. Vessel traffic through the passage slowed on Wednesday as many shipowners kept away, given unclear timing for lifting the blockade linked to the war. Crude stockpiles in the United States grew by 4.4 million barrels in the week to August 14, according to the Energy Information Administration, against market forecasts of a draw near 600,000 barrels.