Crude oil prices were on course for a weekly gain of about 4 percent as the United States and Iran remained divided over a potential peace deal, keeping supply risks elevated.
At the time of writing, Brent crude was trading at $87.84 per barrel, while West Texas Intermediate stood at $82. 45 per barrel.
The gains have been supported by tanker traffic through the Strait of Hormuz remaining at a fraction of pre-war levels, while Washington has threatened to maintain its naval blockade of Iran indefinitely and increase economic pressure on Tehran.
“Despite the bearish crude stock data, the broader geopolitical backdrop is preventing a sharper price decline,” Susan Bell, senior vice president for oil at Rystad Energy, said, according to Reuters.
The geopolitical risk has offset pressure from rising US inventories. ING analysts said US commercial crude stocks increased by more than 17.4 million barrels last week, adding downward pressure on international oil benchmarks.
