Oil hits three-week high on uncertainty over Hormuz

Oil prices surged to a three-week high on Wednesday due to heightened concerns over Middle East tensions. Brent crude futures closed at $91.62 a barrel, while U.S. West Texas Intermediate futures rose to $85.83 a barrel, both marking their highest levels since July 24. The increase in prices was attributed to worries about escalating tensions following the UAE's decision to cut all financial and economic ties with Iran.

The UAE's move came after missile attacks on their territory, while Iran claimed the Strait of Hormuz remained open. However, U.S. President Donald Trump stated no talks were taking place with Iran, and a senior Iranian official said Iran was preparing for a fully offensive military stance due to the diplomatic deadlock. The temporary ceasefire agreement expired on Monday, and Iran reportedly planned to target military sites in Europe if the situation escalated further.

Oil shipments from Russia's western ports dropped by 15% in August due to Black Sea port disruptions. U.S. refinery utilization rates rose to 97.2%, and global fuel supplies remained tight due to attacks on Ukraine's refining sector.