Oil hits three-week high on uncertainty over Hormuz

Oil prices climbed to a three-week high on Wednesday, with Brent futures gaining 45 cents to $91.47 a barrel by 0754 GMT, according to Business Recorder. West Texas Intermediate also rose 45 cents, a 0.53 per cent increase to $85.39 a barrel. Brent reached its highest level since July 30, while WTI touched its peak since July 31.

Market attention centred on doubts about shipping through the Strait of Hormuz, where a temporary ceasefire expired on Monday. US President Donald Trump said on Tuesday that no talks with Iran were taking place and that the waterway was open, while Iran maintained that it remained shut. Shipping volumes stayed far below normal, and data showed traffic through the strait slowed on Wednesday as most shipowners stayed away.

KCM chief market analyst Tim Waterer said confidence in safe passage remained low, leaving a geopolitical risk premium built into prices. Pepperstone research strategist Ahmad Assiri described commercial shipping through Hormuz as facing near full disruption. US inventory figures from the American Petroleum Institute showed crude and distillate stocks fell last week, and official Energy Information Administration data is due later on Wednesday.