Crude oil prices fluctuated following diplomatic talks between Iran and Oman regarding a temporary shipping corridor.
Reports on August 26 and August 27 clarified that Iran will keep the Strait of Hormuz closed. Iran demands an end to United States military and economic pressure before reopening the waterway.
The Strait of Hormuz carries approximately one-fifth of the global oil supply. This continued blockade maintains a significant geopolitical risk premium on crude prices.
The U.S. Energy Information Administration (EIA) reported a slight build in weekly commercial crude inventories. Geopolitical tensions in the Persian Gulf remain the primary driver of market prices.