Oil Prices Surge Amid Strait of Hormuz Shipping Fears

Oil prices surged to their highest level in three weeks as concerns over shipping safety in the Strait of Hormuz and ongoing global supply disruptions intensified. On Wednesday, Brent crude oil futures rose by $0.45 (0.49%) to $91.47 a barrel at 0754 GMT, while US West Texas Intermediate (WTI) crude futures gained $0.45 (0.53%) to $85.39 a barrel.

The rise in prices can be attributed to the uncertainty surrounding shipping through the Strait of Hormuz. Despite assurances from US President Donald Trump that the waterway was open, Iran gave a different account, stating that it remained shut. This led to increased concerns about global energy supplies and pushed oil prices higher.

Tim Waterer, chief market analyst at KCM, said 'Confidence in safe passage remains low.' He attributed this uncertainty to shipping volumes remaining far below normal levels and the geopolitical risk premium in oil prices.