Oil Holds Firm Near Five-Week Highs Amid Ongoing Middle East Tensions
Oil prices held near five-week highs on Wednesday morning after a dramatic rally on Tuesday.
The US-Iran conflict and reports of two tankers disabled by sea mines in the Strait of Hormuz have kept geopolitical supply risks elevated, supporting prices.
WTI crude was trading at around $90.51 per barrel, up 0.3% from Tuesday's settlement, while Brent crude was near $95.14 per barrel, up 0.5% from Tuesday's settlement.
The market is balancing two opposing signals: the risk of further disruptions in Hormuz and the sharp recovery in actual oil transit through the strait.
U.S. Energy Secretary Chris Wright said approximately 17 million barrels of oil transited the Strait on Monday, the highest daily volume since war-related restrictions began disrupting flows.