Oil prices advanced midweek as renewed focus on geopolitical tensions in the Middle East and an unexpectedly sharp fall in US crude inventories helped maintain upward momentum in energy markets. Investor attention turned to the Strait of Hormuz, a vital transit point for global oil flows, after developments involving US and Iranian military forces reignited concerns over supply routes just ahead of planned diplomatic talks.
Brent crude futures rose to $67.79 per barrel, while West Texas Intermediate climbed to $63.73, with both benchmarks showing resilience in the face of broader equity market softness. The upward move followed reports that the US military had intercepted an Iranian drone near an American aircraft carrier in the Arabian Sea. Separately, Iranian gunboats approached a US-flagged tanker north of Oman, according to regional sources.
Despite headlines suggesting risk, market positioning suggests confidence in the sector’s ability to manage short-term volatility. Oil prices have moved within a relatively stable range, supported by both geopolitical developments and tightening fundamentals. With OPEC producers such as Saudi Arabia, the UAE and Iran relying heavily on Hormuz for exports to Asia, any sign of pressure in that corridor continues to be closely watched by traders and institutional investors alike.
Pharos Energy Plc (LON:PHAR) is an independent energy company with a focus on delivering long-term sustainable value for all stakeholders through regular cash returns and organic growth, underpinned by a robust cash flow and resilient balance sheet.
