Oil edges up on uncertainty over exports through Hormuz

Oil prices climbed on Wednesday, reaching their highest level in nearly four weeks, as market participants grappled with escalating tensions in the Middle East following the UAE's decision to halt all financial and economic dealings with Iran. Brent crude futures rose to $91.62 a barrel, an increase of 60 cents or 0.7 percent, while U.S. West Texas Intermediate crude futures gained 89 cents, or 1.1 percent, to settle at $85.83 a barrel.

Both benchmarks hit their highest since July 24. The oil market continues to be influenced by geopolitical tensions in the Middle East, with the UAE cutting off all financial ties to Iran due to recent missile attacks. Brent's climb above $91 a barrel indicates traders are factoring in a higher risk premium, potentially leading to prices returning to three-digit levels, according to Ahmad Assiri, a research strategist at Pepperstone.

Meanwhile, crude inventories in the U.S. rose by 4.4 million barrels to 428.8 million barrels last week, easing concerns about tight supplies.