Oil Prices Hold Near Four-Week Highs on Hormuz Disruption Concerns

Oil prices hovered near four-week highs on Thursday as traders weighed persistent disruption around the Strait of Hormuz against a surprise build in U.S. crude inventories, leaving Brent above $91 a barrel and West Texas Intermediate near $86. The sustained rally, which has seen both benchmarks climb for four consecutive sessions, is driven primarily by geopolitical risk rather than stronger demand, with the market pricing in the potential for prolonged supply constraints from the world's most critical energy corridor.

Brent crude futures traded around $91.87 in early Asian trade on August 20, while front-month WTI was near $85.81. The gains extend a move that began on August 18, when Brent broke above $90 for the first time since late July. That surge followed the official lapse of a 60-day U.S.-Iran negotiating deadline and a threat from President Donald Trump to bomb Oman if it interfered with efforts to control shipping through the strait. The comments deepened uncertainty around a waterway through which roughly one-fifth of global oil consumption normally passes.

The security situation remains tense. Washington states the waterway is open, while Tehran maintains...