Crude oil prices rose for a fourth consecutive session as the US-Iran standoff over the Strait of Hormuz continues. The US-Iran ceasefire officially ended on Monday, with both sides refusing to take part in further peace negotiations.
Tehran has said that it's switching to an offensive from defensive position. Both sides are claiming that they have control over the Strait of Hormuz, with the Trump administration insisting that it is open, while Tehran says it remains closed. There's currently no evidence of any shipping passing through it, so that rather settles the issue for now.
Iran's parliament speaker, Mohammad Bagher Ghalibaf, said the waterway would stay closed until the US meets the conditions of June's memorandum of understanding. Meanwhile, the US navy continues its blockade of Iranian ports across the region, something that Iran says must end as a condition of the memorandum.
Crude oil got some additional support after data from the American Petroleum Institute (API) showed a small contraction in US inventories last week. This comes on top of news that the US Strategic Petroleum Reserve has shrunk to its lowest level in more than 40 years due to drawdowns because of the US-Iran conflict. Oil is now retesting resistance, so this is the next big test for it.
Source: TN Trader
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