Texas oil rises 1.05% on Middle East tensions

Texas crude oil prices saw a notable increase of 1.05%, reaching $85.83 per barrel. This rise occurred as tensions escalated in the Middle East following the United Arab Emirates' announcement to suspend all commercial relations, trade exchanges, and financial transactions with Iran.

The UAE's decision came after its air defense systems detected two ballistic missiles launched from Iran toward its territory. The Ministry of Defense confirmed the detection, leading to the immediate suspension of ties.

This development adds to the already strained geopolitical climate. U.S. President Donald Trump stated that no talks or dialogues with Iran were ongoing or scheduled, and that naval blockades remained in effect. He also asserted that the Strait of Hormuz remained open and operational.

These events unfold as a 60-day memorandum of understanding, signed in June, expired. The agreement had aimed to establish an end to hostilities, reopen the Strait of Hormuz, lift the ban on Iranian oil sales, and end the blockade of Iranian ports and vessels. Meanwhile, U.S. crude oil reserves increased by 4.4 million barrels in the past week, reaching 428.8 million barrels, according to the Energy Information Administration.