Hormuz Tensions Drive Oil Prices to Three-Week High

Oil prices have risen to a three-week high due to concerns over the safety of ships passing through the Strait of Hormuz and ongoing supply disruptions. This uncertainty has led traders to add an extra geopolitical risk premium to oil prices.

Brent crude oil futures rose by 0.49% to $91.47 a barrel, reaching its highest level since July 30. US West Texas Intermediate (WTI) crude futures also gained 0.53% to $85.39 a barrel, touching its highest level since July 31.

Tim Waterer, chief market analyst at KCM, stated that 'confidence in safe passage remains low.' He noted that shipping volumes are far below normal levels, and this uncertainty is maintaining the extra geopolitical risk premium in oil prices.