Hormuz Uncertainty Sends Oil Prices Soaring

Oil prices hit their highest level in three weeks on Wednesday as concerns over shipping through the Strait of Hormuz and ongoing supply disruptions supported the market.

Brent crude futures rose to $91.79, its highest since July 30, while US West Texas Intermediate (WTI) crude futures climbed to $85.79 a barrel, their highest since July 31.

Tim Waterer, chief market analyst at KCM, said that 'confidence in safe passage remains low' and that the persistent uncertainty continues to keep a geopolitical risk premium embedded in the oil price.

The Strait of Hormuz is a critical waterway that carries about one-fifth of global oil and liquefied natural gas supplies. Its disruption has remained a central concern for energy markets, with shipping volumes still running well below normal levels.