Oil prices rose for a fourth consecutive session Wednesday as Hormuz risks intensified amid uncertainty over shipping conditions. Brent crude futures gained 69 cents, or 0.8%, reaching $91.71 per barrel by 0415 GMT. Meanwhile, U.S. West Texas Intermediate crude increased 76 cents, or 0.9%, to reach $85.70.
Both benchmarks had already reached their highest closing levels in more than three weeks Tuesday. However, investors remained cautious as diplomatic efforts between Washington and Tehran showed little sign of immediate progress. U.S. President Donald Trump said Tuesday that no negotiations with Iran were underway. At the same time, Trump maintained that the Strait of Hormuz remained open to maritime traffic.
Iran, however, continued to describe the strategic waterway as closed to shipping amid ongoing regional tensions. Consequently, conflicting statements from both sides increased uncertainty for shipping companies and energy traders. A temporary ceasefire expired Monday, while diplomatic deadlock appeared to increase concerns about further regional escalation. Nevertheless, no fresh attacks between the main parties emerged publicly on Tuesday, easing some immediate concerns.
Shipping activity through Hormuz also slowed Wednesday as many operators avoided the waterway amid unclear reopening conditions. The Strait remains especially important because major energy producers depend heavily on routes through the Gulf. Furthermore, risks around the Bab el-Mandeb Strait continued affecting shipping decisions and regional energy markets. Analysts said attacks involving Iran and the Houthis continued supporting oil prices as regional risks increased.
At the same time, Gulf producers explored alternative routes to move crude toward markets beyond the Gulf. Those alternatives could eventually allow producers to restore some output currently held back because of transportation difficulties. Iraq has also taken steps to reduce its dependence on Hormuz for crude export operations. The Iraqi cabinet approved arrangements allowing specialized international and domestic companies to transport crude through alternative outlets.
Accordingly, the new contracts will operate for three months beginning September 1, according to officials. The measures could provide additional flexibility if disruptions through Hormuz continue affecting regional energy transportation. Meanwhile, major Chinese shipping companies have also changed their routes because of growing regional security concerns. Two large operators stopped sending oil tankers through Hormuz and Bab el-Mandeb during the conflict.
Instead, they began collecting oil cargoes from locations outside the Gulf to limit exposure to disruptions. In the United States, crude and distillate inventories declined during the latest reporting week. However, gasoline inventories increased, according to preliminary industry data released ahead of official figures. The U.S. Energy Information Administration was scheduled to publish its weekly inventory figures later Wednesday.
Market expectations indicated that American crude inventories likely declined by approximately 600,000 barrels. The estimate covered the week ending August 14 and could provide additional direction for oil markets. Overall, Hormuz risks continued supporting crude prices as traders assessed supply routes and geopolitical developments. Yet alternative export channels could reduce some pressure if regional producers maintain reliable transportation outside the Strait.
