Middle East Tensions Send Oil Prices Soaring to Near Four-Week High

Crude oil prices rose on Wednesday and settled at the highest in nearly four weeks as investors worried about escalating tensions in the Middle East. The United Arab Emirates suspended all financial and economic transactions with Iran, causing concern over potential disruptions to global oil supplies.

The Strait of Hormuz remains a focal point for the oil market, through which about one-fifth of global oil and liquefied natural gas supplies passed before the U.S.-Israeli war on Iran began. Ship traffic through the strait has slowed down, with only six commodity vessels crossing it on Tuesday.

Brent crude futures settled at $91.62 a barrel, up 60 cents or 0.7%, while U.S. West Texas Intermediate crude futures rose 89 cents or 1.1% to settle at $85.83 a barrel. The increase suggests traders are pricing in a higher risk premium and potentially returning to three-digit levels.