A larger-than-expected build in US crude inventories weighs on oil prices despite ongoing tensions in the Strait of Hormuz.
West Texas Intermediate crude fell 0.77% to $81.60 after US crude inventories rose by 4.3 million barrels, reversing earlier gains. The inventory build countered supply concerns tied to escalating US-Iran tensions in the Strait of Hormuz, a critical oil shipping route.
Analysts had anticipated a smaller increase, with prior reports showing mixed inventory trends. The latest data contrasts with recent geopolitical risks, including US military action against a vessel bound for Iran and Tehran’s threats to close the strait unless demands are met.
Diplomatic efforts persist, with Pakistan mediating talks between Iran and the US. However, market focus remains on inventory levels amid persistent supply risks.