Middle East Tensions Fuel Oil Price Surge to Near Seven-Month High

Oil prices continued their upward trend on Wednesday, reaching new highs since late July. Brent crude oil climbed to around $89.66 per barrel, while U.S. West Texas Intermediate (WTI) rose to approximately $83.92.

The gains were driven by renewed uncertainty over a potential U.S.-Iran agreement and fresh security incidents involving commercial shipping in the Middle East.

Market participants are closely monitoring the Strait of Hormuz, one of the world's most important oil transit routes, where shipping activity remains well below normal levels due to persistent security concerns.

The American Petroleum Institute reported a sharp increase of about 9.1 million barrels in U.S. crude inventories, but gasoline and distillate stockpiles declined, indicating continued strength in refined fuel demand.