Oil Prices Climb Amid Escalating Middle Eastern Tensions

Global crude prices rose more than 1% on Wednesday, nearing a three-week high as investors grew concerned about escalating tensions in the Middle East. The United Arab Emirates (UAE) suspended all financial and economic transactions with Iran, adding to the region's already volatile situation.

Shipping through the Strait of Hormuz also remained slow due to a lack of clear signaling on its reopening after the Iran war. This was evident as most ship owners avoided the waterway, citing uncertainty about its status.

Brent crude futures were up $1.17, or nearly 1.3%, at $92.21, while U.S. West Texas Intermediate (WTI) futures were $1.51, or 1.8% higher, at $86.45 a barrel.

Dennis Kissler, senior vice president of trading at BOK Financial, attributed the market's support to ongoing geopolitical tensions in the Middle East. He noted that investors are pricing in a higher risk premium, with prices potentially returning to three-digit levels if the situation escalates further.