Oil Prices surged on Wednesday amid the ongoing uncertainty over vessel movement via the Strait of Hormuz and continuous supply disruptions. Brent crude futures rose 77 cents, or 0.85 percent, to $91.79 by 0948 GMT, while US West Texas Intermediate crude futures climbed 85 cents, or 1 percent, to $85.79 a barrel.
Brent Crude has reached its Peak since July 30 and WTI hit its highest since July 31.
"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 price," Reuters quoted KCM chief market analyst Tim Waterer as saying.
Furthermore, US President Donald Trump stated on Tuesday that no negotiations were ongoing with Iran and that the strategic waterway is open, countering Iran’s claims over closure of the passage.
A temporary ceasefire agreement terminated on Monday. Reuters reported an Iranian official stating that Iran is shifting its stance due to diplomatic standstill, though neither side reported any strikes on Tuesday.
