Oil Pushes Toward $85 as Hormuz Risk Keeps Supply in Focus

WTI is pushing higher again, with prices trading around $85 in Asian trading on Wednesday and heading for a fourth straight day of gains.

This time, the market is watching the Strait of Hormuz more closely than the headlines coming out of Washington and Tehran.

There is still no clear sign of a deal between the US and Iran, while the naval blockade remains in place. Ship traffic through the strait has also been heavily disrupted, leaving one of the world's most important oil routes vulnerable to another supply shock.

The latest attacks have only added to the concern. Iranian forces have reportedly attacked eight vessels in the region this month, including ships linked to Saudi Arabia and the UAE.

For oil traders, that is enough to keep a risk premium in prices.

There is some support coming from the US market as well. Industry data showed US crude inventories fell by 328,000 barrels last week, although that followed a much larger 9.07 million-barrel build in the previous week.

So far, supply concerns are winning the argument.

But crude is getting close to an area where the market may start asking how much of the geopolitical risk is already priced in. A genuine breakthrough in US-Iran talks could take some of that premium out quickly.

For now, though, the situation around Hormuz remains unresolved. As long as tanker traffic stays restricted and the risk of further attacks remains, $86 is looking less like a distant target and more like the next level the oil market has to deal with.