Hormuz chaos nears month 3: Oil prices climb as tightened supplies squeeze fuel reserves

Key points

• Oil prices edged higher on Thursday as continuous supply disruptions due to the Iran conflict raised concerns over tightening fuel reserves across the globe.
• Benchmark oil prices traded marginally higher, with WTI Crude rising 0.58% to $98.83 a barrel and Brent Crude gaining 0.44% to $105.5 a barrel.The recovery comes after a sharp decline on Wednesday, when both oil benchmarks dropped more than 5.6% after US President Donald Trump said that negotiations with Iran were nearing completion.
• At the same time, Trump warned Tehran of more attacks if it refused to accept a peace agreement.Markets remain uncertain over whether the talks will produce a breakthrough, especially as tensions around the Strait of Hormuz continue, nearing the 3 month mark now.
• Before the conflict began, the Strait of Hormuz carried oil and liquefied natural gas shipments equal to roughly 20% of global consumption.
• The route has remained largely shut.Earlier, Iran had...