Brent Crude Surges Above $89 Amid Hormuz Tensions

Brent crude oil prices rose above $89 per barrel in early European trade on Wednesday, driven by persistent supply concerns and disruption risks around the Strait of Hormuz.

Iran claims that the waterway will remain closed unless the United States meets its conditions, while President Trump said the US has 'total control' over the strait. However, US officials say regional oil flows have normalized, but vessel traffic remains depressed due to security concerns.

Iran's stance is that the Strait of Hormuz will stay shut until the US ends the war and meets Tehran's conditions. In a statement, President Trump asserted, 'We own it,' referring to the strait. However, former US Deputy Secretary of State Wendy Sherman expressed skepticism about the possibility of restoring oil traffic through the waterway, saying that without significant concessions from the US, 'I don't think we'll get it open for any sustainable period of time.'

Oil flows from the Middle East have reportedly normalized, according to US Energy Secretary Chris Wright. However, data suggests otherwise, with vessel traffic at the strait declining amid heightened security concerns and uncertainties about US-Iran talks.