Oil advances for fifth straight session on Iran tensions and Strait of Hormuz disruptions

Oil prices edged higher on Thursday, August 20, as mounting supply disruption risks tied to the escalating confrontation with Iran and constrained tanker transit through the Strait of Hormuz supported the market.

Brent crude futures for October delivery gained $0.26 to $91.87 per barrel, while US West Texas Intermediate (WTI) crude for September delivery advanced $0.17 to $86.00 per barrel. The rally marks the fifth consecutive day of gains, keeping both benchmarks at their highest levels since July 24.

Market sentiment remains supported by deadlocked diplomatic negotiations in the Middle East and tanker shipping volumes through the Strait of Hormuz persisting well below pre-conflict baselines. Continued draws in US distillate stockpiles for a third straight week provided further upside, offsetting a surprise 4.4-million-barrel build in commercial crude inventories.

N.Tebrizli