Hormuz Uncertainty Boosts Oil Prices to Three-Week High
Oil prices rose to a three-week high on Wednesday (19 August) amid uncertainty over shipping through the Strait of Hormuz. According to Reuters, Brent crude rose 40 cents to US$91.42 a barrel, while US West Texas Intermediate (WTI) crude rose 37 cents to US$85.31 a barrel.
Brent reached its highest level since 30 July, while WTI hit its highest level since 31 July. 'Confidence in shipping safety remains low, with shipping volumes still well below normal levels,' said Tim Waterer, chief market analyst at KCM.
US President Donald Trump stated on Tuesday (18 August) that there were no talks underway with Iran over the Strait of Hormuz and the reopening of the shipping route. However, this contradicted an Iranian statement that the waterway remained closed.
A senior Iranian official told Reuters that the country had shifted to a 'fully offensive' military posture due to the diplomatic deadlock.