Oil prices hit three-week high

Oil prices recorded their highest level in three weeks on Wednesday, amid uncertainty over shipping movements through the Strait of Hormuz and ongoing supply disruptions. Brent crude futures rose 77 cents, or 0.85%, to $91.79 per barrel, while U.S. West Texas Intermediate crude futures climbed 85 cents, or 1%, to $85.79 per barrel. Brent reached its highest level since July 30, while WTI hit its highest since July 31.

Tim Waterer, chief market analyst at KCM, said, “Confidence in the safe passage of the maritime corridor remains low, with shipping activity still far below normal levels, and this uncertainty continues to support a geopolitical risk premium in oil prices.”

U.S. President Donald Trump stated on Tuesday that Washington is not holding any talks with Iran and that the Strait of Hormuz is open, a comment that contradicted a previous Iranian assertion that the strait remains closed to maritime navigation. Ahmed Asiri, a market analyst at Piperston, noted, “Commercial shipping through the Strait of Hormuz continues to face near-total disruption, amid ongoing disputes over the terms governing maritime navigation.”