Brent Crude Nears $93 as US-Iran Standoff and Hormuz Tensions Raise Supply Concerns

By Staff, Agencies

Brent crude climbed toward $93 a barrel on Thursday, extending its weekly gains to more than 4% as uncertainty surrounding the US-Iran confrontation and the status of the Strait of Hormuz continued to weigh on global energy markets. Brent reached about $92.90 during trading, its fifth consecutive session of gains.

The latest increase comes as Washington and Tehran remain at an impasse over efforts to end the conflict. Oil markets are particularly focused on the Strait of Hormuz, where shipping activity remains sharply reduced amid conflicting statements over whether the waterway is open or closed. Kpler data showed only nine commodity-vessel transits through the strait on Wednesday.

US President Donald Trump has said oil continues to move through the waterway and indicated that he could be open to resuming negotiations with Tehran at some point. Iran, however, maintains that the strait remains closed pending fulfillment of its conditions.

The situation has added a significant geopolitical risk premium to crude prices, with traders concerned that prolonged disruption could further tighten global supplies. Analysts say alternative routes and ship-to-ship transfers have allowed some Gulf producers to continue exporting substantial volumes despite the reduced traffic through Hormuz. Saudi Arabia, for example, has resumed some oil loadings from within the strait using alternative shipping arrangements.

The pressure on Iran has also intensified after the UAE announced the suspension of financial and economic transactions with the Islamic Republic, citing alleged Iranian missile activity. Tehran has denied responsibility for the missile launches.

In the United States, Energy Information Administration data showed crude inventories rose by 4.4 million barrels last week, contrary to expectations for a decline. Distillate inventories, meanwhile, fell by 1.5 million barrels, reaching their lowest level in more than a month.

With diplomatic efforts stalled and shipping through Hormuz remaining severely constrained, energy markets are increasingly pricing in the possibility of prolonged disruptions to regional oil supplies.