Oil Prices Soar on Strait of Hormuz Uncertainty
Oil prices have surged to their highest level in three weeks due to ongoing uncertainty over shipping through the Strait of Hormuz. The Brent crude futures price climbed 54 cents, or 0.59%, to $91.56 per barrel by 11:57 GMT on Wednesday, while US West Texas Intermediate (WTI) crude futures rose 59 cents, or 0.69%, to $85.53 a barrel.
The Strait of Hormuz has been a major concern for energy markets since the US-Israeli war on Iran began in late February. The waterway carries around one-fifth of global oil and liquefied natural gas supplies, and its disruption remains a central worry.
KCM chief market analyst Tim Waterer noted that 'confidence in safe passage remains low' and that 'persistent uncertainty continues to keep a geopolitical risk premium embedded in the oil price.'