Oil climbs as Hormuz shipping risks remain in focus

Highlights

Brent crude rose 0.89%, while WTI crude gained 0.80%.
Traders are watching U.S.-Iran talks and Hormuz shipping risks.
Supply recovery and OPEC+ output increases are limiting gains.

Brent crude futures rose 0.89% to $72.63, while U.S. West Texas Intermediate crude futures climbed 0.80% to $69.10. Oil prices increased after attacks on ships in and around the Strait of Hormuz highlighted the continuing danger for vessels in the critical waterway, Reuters reported.

Hormuz risk supports prices

The Strait of Hormuz remains the main focus for oil traders because of its role in moving crude and liquefied natural gas from the Gulf to global markets. Shipping data showed Japanese-owned supertankers carrying Saudi crude heading toward the Strait of Hormuz to leave the Gulf, joining previously stranded vessels. Still, analysts said the recovery in tanker traffic has been slow and uneven, with vessel crossings remaining limited.

Iran’s foreign minister said talks between Tehran and Washington would not take place if U.S. threats continue. That kept a geopolitical premium in the market, even as some vessels resumed movement through the strait.

Supply signals limit the rally

The rise in oil was restrained by signs that the physical market remains supplied. Saudi Arabia has cut its August official selling prices, while OPEC+ continues to unwind production cuts and Gulf exports are recovering.

That leaves crude caught between two forces. Security risks in the Gulf are keeping buyers alert, but rising output and slower demand concerns are limiting the upside. Analysts see the market balancing fears of supply disruption against signs of plentiful supply, with U.S. crude facing resistance near $70 and $75 a barrel unless Hormuz tensions worsen.

Saudi Arabia is also considering expanding the capacity of its crude oil pipeline to the Red Sea coast. Such a move would allow the kingdom, and possibly its neighbors, to increase their ability to transport oil without relying on the Strait of Hormuz.

A fragile balance for crude

Oil’s latest rise shows that geopolitical risk has not disappeared from the market, even after prices retreated from earlier war-driven highs. The Strait of Hormuz remains central because any serious disruption there could quickly affect global crude and LNG flows.

For now, the market is not pricing in a full supply shock. Brent remains near $73 and WTI near $69, suggesting traders see risk but not panic. That could change if U.S.-Iran talks break down further, tanker traffic stalls, or more vessels are attacked. At the same time, recovering Gulf exports, Saudi pricing cuts, and OPEC+ supply increases may keep rallies contained unless the security situation deteriorates.

Earlier, we reported that Trump says Strait of Hormuz will remain open and toll-free.

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