Oil extends climb on prolonged Hormuz export uncertainty

Oil prices rose for a fourth consecutive session on Wednesday, according to The Express Tribune, as traders weighed contradictory signals from Tehran and Washington over whether the Strait of Hormuz is open to ships. Brent crude futures added 69 cents to $91.71 a barrel, a rise of 0.8%, while West Texas Intermediate rose 76 cents, or 0.9%, to $85.70. Both benchmarks had closed Tuesday at levels not seen in over three weeks, after expectations of a settlement between the US and Iran weakened.

President Donald Trump stated on Tuesday that no talks were under way with Iran and insisted the waterway was open, while Tehran maintained it remained shut to shipping. A temporary ceasefire expired on Monday, yet neither side reported fresh strikes on Tuesday. Analyst June Goh of Sparta Commodities said rising shipping risks from Iranian and Houthi attacks at two critical chokepoints were keeping prices firm in the short run.

Shipping data released on Wednesday showed traffic through Hormuz slowed, as most shipowners stayed away amid unclear signals about reopening after a blockade. Iraq's cabinet approved alternative export arrangements for Iraqi crude through specialised companies and several outlets, running for three months from September 1. Two large Chinese shipping firms have also halted tanker movements through Hormuz and Bab el-Mandeb and are collecting cargoes outside the Gulf.