Hormuz Shipping Risks Send Oil Prices Soaring
Oil prices surged to their highest level in nearly three weeks on Wednesday, as persistent uncertainty over shipping through the Strait of Hormuz and ongoing disruptions to global supply weighed on markets.
Brent crude futures rose 0.89% to $91.91 per barrel, its highest since July 30, while US West Texas Intermediate (WTI) crude futures climbed 1.08% to $84.97 per barrel, reaching its strongest level since July 31.
The gains reflect a growing risk premium as markets continue to grapple with the security situation and conditions for commercial traffic through the Strait of Hormuz, which has seen significantly below-normal shipping activity.
Market sentiment was also affected by conflicting statements over the status of the Strait, with US President Donald Trump stating that no talks were underway with Iran and that the waterway remained open, while Iran maintained that the passage was still closed.