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West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $60.35 during the Asian trading hours on Thursday. The WTI price edges higher amid persistent tensions in Iran. Traders will closely monitor the latest geopolitical developments surrounding the Iranian civil unrest.

US President Donald Trump had previously threatened to take “very strong action” against the Islamic Republic if it executes protestors. Bloomberg reported on Wednesday that the US moved military staff, and the Iranian government warned neighboring countries against assisting an attack. Fears of US military action against Iran and concerns over a possible oil production disruption in Iran could boost the WTI price in the near term. 

On the other hand, any signs of easing tensions in Iran might cap the downside for the WTI price. Trump said early Thursday that Iran has “no plan for executions,” amid fears for the fate of a detained anti-government protester. However, Trump declined to take military action off the table, saying his administration will wait and see.

US crude inventories are experiencing a large build in US crude inventories. According to the Energy Information Administration (EIA) weekly report, crude oil stockpiles in the US for the week ending January 14 rose by 3.391 million barrels, compared to a fall of 3.831 million barrels in the previous week. The market consensus estimated that stocks would decline by 2.2 million barrels.

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