Oil prices steadied in early Asian trade on Thursday after U.S. President Donald Trump threatened more, stricter economic restrictions against Iran.

Crude prices came close to one-month highs, clocking five straight sessions of gains as the standoff in the Strait of Hormuz showed few signs of easing.

Brent oil futures rose 0.25% to $91.85 a barrel by 20:25 ET (00:25 GMT), while West Texas Intermediate crude futures rose 0.15% to $84.52 a barrel.

Markets were bracing for a protracted standoff in Hormuz after Trump said Washington will impose more, strict economic restrictions against Iran.

Trump did not provide details on just what the new restrictions would entail, but called on U.S. allies to also join the effort. He warned against any country engaging in business with Iran, calling his plans “the most crushing economic operation ever taken against any country.”

Iran is already subject to strict U.S. sanctions on its oil exports, with Washington also having imposed a naval blockade on the country amid their ongoing war.

Iran had responded to U.S. aggression by effectively blocking the Strait of Hormuz for most of the year, disrupting at least 20% of the globe’s crude supplies.

Recent shipping data showed commercial traffic through Hormuz remained at a fraction of pre-war levels, despite repeated claims by U.S. officials that the waterway was open.

Trump had on Wednesday reiterated his claims that the U.S. held full control of Hormuz, and that talks with Iran could still resume "at some point."

Iran has largely denied that any dialogue with the U.S. took place, and has demanded that Washington fulfill the conditions of a June memorandum of understanding before any progress on Hormuz can be made.

The MoU lapsed earlier this week with few indications from the U.S. and Iran that it would be renewed.

Source: Investing.com

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