Brent Crude Tests Critical Level Amid Strait of Hormuz Uncertainty

Crude oil prices continued their upward trend on Wednesday, driven by uncertainty over shipments through the Strait of Hormuz. Brent crude futures rose 26 cents to $91.28 a barrel in early trade, while U.S. West Texas Intermediate gained 37 cents to $85.31.

The latest move follows renewed tensions between the United States and Iran. A temporary ceasefire expired on Monday, and President Donald Trump said no talks were taking place with Iran. The Strait of Hormuz remains a key concern for traders, with Washington saying it is open but Iran maintaining that shipping is restricted.

Taner Genek, a trader, sees $92 as a critical level for Brent crude. If the price fails to hold above this level, it could bring Brent back down towards around $86.66. However, if sustained trading above $92 continues, it could have negative implications for stock markets.

The International Energy Agency (IEA) reported that global oil supply increased by 2.4 million barrels per day in July but remained 6.3 million barrels per day below year-earlier levels. The agency expects a 1.8 million-barrel-per-day market deficit in the third quarter, despite high fuel prices and supply disruptions weighing on demand.