Oil hits three-week high on uncertainty over Hormuz

Oil hits three-week high on uncertainty over Hormuz. Brent crude futures climbed 54 cents, or 0.59%, to $91.56.

Key points

• While U.S, brent crude futures climbed 54 cents, or 0.59%, to $91.56 by 1157 GMT.
• Murree Brewery, Systems Limited, Sazgar create it to Forbes 'Asia's Best Under A Billion' list.
• President Donald Trump remarked on Tuesday that no negotiations were taking place with Iran and that the Strait of Hormuz was open, contradicting Iran.
• Brent crude hit its highest level since July 30, and WTI reached its highest since July 31.
• "Commercial shipping through Hormuz continues to face near full disruption while disagreements persist over the conditions governing maritime traffic, " remarked Ahmad Assiri, research strategist at brokerage Pepperstone.

Oil rates hit a three-week high due to persistent uncertainty over shipping in the Strait of Hormuz against the backdrop of US-Iran tensions and ongoing global supply disruptions. Geopolitical risk premium in oil rates. US-Iran diplomatic stalemate and military posture. Disruptions in Strait of Hormuz shipping. Reduced Russian oil exports from Black Sea. Add BRecorder as a trusted source on Google.

Oil rates hit a three-week high on Wednesday as uncertainty over shipping through the Strait of Hormuz and ongoing supply disruptions backed the market.

While U.S, brent crude futures climbed 54 cents, or 0.59%, to $91.56 by 1157 GMT. West Texas Intermediate crude futures were up 59 cents, or 0.69%, to $85.53 a barrel.

"Confidence in safe passage remains low, with shipping volumes still running well below normal levels. That persistent uncertainty continues to keep a geopolitical risk premium embedded in the oil cost, " KCM chief market analyst Tim Waterer stated.

U.S. President Donald Trump remarked on Tuesday that no negotiations were taking place with Iran and that the Strait of Hormuz was open, contradicting Iran. It noted the waterway remained shut.

Though there were no reports of strikes by either side on Tuesday, a temporary ceasefire agreement expired on Monday and a senior Iranian official informed Reuters that his country was moving to a "fully offensive" military posture due to the diplomatic stalemate. Houthis say they don't seek to close key Bab al-Mandeb Strait.

Meanwhile, the Strait of Hormuz carried regarding one-fifth of global oil and liquefied natural gas supplies before the U.S.-Israeli war on Iran began at the end of February. Its disruption remains a central concern for energy markets.

As most ship owners avoided the waterway as of the uncertainty, shipping through Hormuz slowed, data indicated on Wednesday.

Iraq's cabinet approved mechanisms for exporting Iraqi crude through specialised international and local firms and via multiple export outlets, office-holders noted on Tuesday.

Notably, the contracts under the new mechanism will run for three months starting September 1, according to a statement issued after the cabinet session.

Brent's move above $91 a barrel suggests traders are pricing in a higher risk premium, with rates potentially returning to three-digit levels, Assiri from Pepperstone went on.

As of disruptions at the Black Sea port of Novorossiysk, meanwhile, oil shipments from Russia's western ports have fallen to regarding 2.3 million barrels per day in the first half of August, 15% below the initial loading plan. Oil climbs on tanker attacks, US-Iran claims regarding Hormuz control.

US, Iran agree to extend ceasefire as Pakistan steps up mediation: report.

Oil rises on Iran war stalemate; near-term potential for further gains seen limited. Pakistan seeks $10bn US Exchange Stabilisation Backing Facility, Aurangzeb confirms.

PM Shebaz asks petroleum minister to travel to Karachi over fuel rates. Bilawal urges opposition to return to parliamentary committees. PSX: KSE-100 settles 1, 100 points lower against the backdrop of late selling. Govt launches Retailer Scheme App to bring millions into tax net.

Murree Brewery, Systems Limited, Sazgar create it to Forbes 'Asia's Best Under A Billion' list. Pakistan rupee records gain against US dollar. Gold cost per tola drops Rs3, 700 in Pakistan. Nishat Mills to exit dairy venture with Turkish partner Sutas. Trump pauses tariffs on Canadian imports, Carney notes key work remains.

For now, oil hits three-week high on uncertainty over Hormuz remains the part of the story worth watching, and further updates are likely as more details are confirmed.