Crude oil traded near $86 per barrel on Thursday after rising more than 3% so far this week, supported by elevated geopolitical risk in the Middle East as the US and Iran remain deadlocked. Tensions have been compounded by a standoff over the Strait of Hormuz, though President Donald Trump noted that oil continues to move through the key shipping lane and indicated he would be open to resuming talks with Tehran “at some point.”
Adding to the pressure on Iran, the UAE said it would suspend financial and economic transactions with the country after accusing Tehran of launching ballistic missiles at its territory. Despite the heightened risks, Gulf producers have continued to move substantial crude volumes via alternative routes and through discreet shipments.
In the US, EIA data showed crude inventories rose by 4.4 million barrels last week, while distillate stocks fell by 1.5 million barrels to their lowest level in more than a month.