Oil Near $92 Due to Blockade At Hormuz

Oil prices climbed for a fourth straight day on Wednesday, as tanker traffic through the Strait of Hormuz slowed due to escalating tensions between Iran and the United States. Brent crude reached $91.53 per barrel, while West Texas Intermediate settled at $85.47 per barrel, according to the latest report. The price surge occurred as fresh tanker tracking data revealed a further decline in shipping activity through the crucial oil chokepoint.

The slowdown is fueled by escalating hostile rhetoric from Washington and Tehran, with neither side displaying any inclination to resume negotiations. President Donald Trump stated that the Strait of Hormuz remains open, while Iran claims the waterway is closed. Recent tanker movements have heightened concerns about potential disruptions.

Several vessels have reportedly reversed course rather than proceed through the strait, and the United Kingdom Maritime Trade Operations reported that a cargo vessel was hit by an unidentified projectile while attempting to transit the waterway. The Strait of Hormuz is a vital route for global energy supplies, and any sustained disruption poses a significant concern for oil markets.

Rising shipping risks have thus provided sustained support to crude prices. June Goh, senior oil analyst at Sparta Commodities, stated that shipping risks are increasing once more, as attacks attributed to Iran and the Houthis remain prevalent around key chokepoints. However, she added that Gulf producers are investigating alternative export routes to transport crude towards the Gulf of Oman.