Oil traded higher in today’s session after both benchmark prices advanced more than 4% on Wednesday, against a backdrop of escalating tensions in the Middle East and uncertainty surrounding negotiations over Iran’s nuclear program.
West Texas Intermediate (WTI), the U.S. benchmark, rose 0.72% to $65.66 per barrel. Meanwhile, Brent, the benchmark for Angola and Europe, gained 0.70% to $70.84 per barrel.
Investors are closely monitoring the diplomatic deadlock between Washington and Tehran, at a time when both countries are increasing their military presence in the region. The market fears that any further escalation could affect maritime transport through the Strait of Hormuz, a strategic route through which around 20% of global crude consumption passes.
Iran warned pilots about projectile launches in the south of the country, coinciding with joint naval exercises with Russia. At the same time, the United States deployed warships to nearby areas, while the U.S. vice president acknowledged that Washington is weighing whether to continue negotiations or adopt an “alternative option.”
Beyond the geopolitical scenario, investors are also awaiting official data on U.S. inventories. Preliminary information indicates that crude, gasoline, and distillate stocks declined last week, contrary to forecasts of an increase of more than two million barrels. Final figures from the U.S. Energy Information Administration will be released this Thursday.
On the international front, peace negotiations between Ukraine and Russia, held in Geneva, ended without significant progress, maintaining a global climate of uncertainty that continues to influence energy markets.
Source: Mercado
