Middle East Tensions Push Oil Prices Near Three-Week High

Oil prices surged more than 1% on Wednesday, reaching near three-week highs due to escalating tensions in the Middle East. The United Arab Emirates (UAE) has suspended all financial and economic transactions with Iran, exacerbating concerns about regional stability.

Data shows that shipping through the Strait of Hormuz remains slow as ship owners avoid the waterway due to unclear signalling on its reopening from a blockade.

Brent crude futures rose $1.17, or nearly 1.3%, to $92.21 at 1741 GMT, while US WTI crude futures gained $1.51, or 1.8%, to $86.45 per barrel.

According to Dennis Kissler, senior vice president of trading at BOK Financial, 'crude futures remain supported by the geopolitical tensions that remain in the Middle East, now with the UAE stating they have cut off all financial ties to Iran due to the latest missile attacks.'