Hormuz Tensions Push Oil Prices Above $91 as Market Assigns Premium to Supply Disruption

Oil prices surged on Wednesday as uncertainty over the Strait of Hormuz kept supply risks in focus, pushing Brent crude futures above $91 a barrel and WTI towards $86.

The market is assigning a premium to geopolitical risk rather than a sudden improvement in demand. Washington and Tehran continue to offer conflicting accounts of whether Hormuz is fully open, while shipping activity through the waterway remains constrained.

A projectile damaged a vessel in the strait near Oman this week, while the UAE said two ballistic missiles were launched from Iran towards its territory. Iran denied the accusation.

Sparta Commodities analyst June Goh sees the renewed threats around both Hormuz and Bab el-Mandeb as supportive for crude in the near term.