Hormuz Uncertainty Sends Oil Prices Soaring to Three-Week High

Oil prices surged to a three-week high on Wednesday due to ongoing uncertainty over shipping through the Strait of Hormuz and supply disruptions. Brent crude futures climbed 54 cents, or 0.59%, to $91.56 per barrel, while U.S. West Texas Intermediate crude futures rose 59 cents, or 0.69%, to $85.53 a barrel.

The Strait of Hormuz has been a central concern for energy markets since the US-Israeli war on Iran began in February. Its disruption carries significant implications, as it accounts for about one-fifth of global oil and liquefied natural gas supplies. Commercial shipping through the waterway remains near-full disrupted due to disagreements over conditions governing maritime traffic.

Despite claims by U.S. President Donald Trump that the Strait of Hormuz was open, Iran maintains that it is still shut. The country's temporary ceasefire agreement expired on Monday, and a senior Iranian official stated that his nation would move to 'maximum resistance' due to diplomatic stalemate.