Oil prices hit a three-week high on Wednesday ?as uncertainty over shipping through ?the Strait of Hormuz and ?ongoing supply disruptions supported the market.
Brent crude futures climbed 40 cents to $91.42, while U.S. West Texas Intermediate crude futures were up 37 cents to $85.31 a barrel. Brent crude ?hit ?its highest level since July 30 and WTI reached its ?highest since July 31.
U.S. President Donald ?Trump said on Tuesday no talks were taking place with Iran and that the Strait of Hormuz was open, contradicting Iran, which said the waterway remained shut.
A temporary ?ceasefire agreement expired on Monday and a senior Iranian official told Reuters that his country was moving to a “fully offensive” military posture due to the diplomatic stalemate, though there were no reports of strikes by either side on Tuesday.
The Strait ?of Hormuz carried about 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.
Shipping through Hormuz slowed, data showed on Wednesday, as most shipowners ?avoided the waterway because of the uncertainty.
Iraq’s cabinet approved mechanisms for exporting Iraqi crude through ?specialised international and local companies and via multiple export outlets, the government said on ?Tuesday.
The contracts under the new mechanism will run for three months starting September 1, according to a statement issued after the cabinet meeting.
Official inventory numbers from the U.S. Energy Information Administration were due later Wednesday morning. Analysts polled by Reuters expect crude stocks to ?have fallen by about 600,000 barrels in the ?week ended August 14.
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