Middle East Tensions Fuel Crude Oil Price Surge to Four-Week High

Crude oil prices surged to a four-week high on Wednesday as tensions in the Middle East intensified. The United Arab Emirates announced it was cutting all economic ties with Iran after accusing the country of firing ballistic missiles at its territory.

The Strait of Hormuz remains closed, limiting crude supplies from the Middle East and keeping upward pressure on oil prices. US Energy Secretary Chris Wright said the US is playing the long game with Iran, implying no plans for de-escalation of the conflict.

Israel's attacks on Iran-backed Hezbollah in Lebanon further dampened prospects of ending hostilities in the region. Despite these developments, many Gulf countries have successfully transited crude shipments through the Strait of Hormuz.