Oil prices climbed for a fourth consecutive session on Wednesday as tanker-tracking data indicated further slowdowns in traffic through the Strait of Hormuz, compounded by escalating rhetoric between Iran and the United States.
Brent crude was last trading at $91.53 per barrel, while West Texas Intermediate (WTI) stood at $85.47 per barrel. The gains follow the expiration of a June ceasefire agreement between Washington and Tehran, which collapsed in early July. Iran has maintained that the strait remains closed to shipping, a claim supported by reports of vessels reversing course to avoid transit.
On Tuesday, a cargo ship transiting the strait was struck by an unidentified projectile, according to the U.K. Maritime Trade Operations. The incident marked the latest in a series of reported attacks on vessels in the region, raising concerns over shipping safety and supply disruptions.
"The shipping risks are increasing again as attacks from Iran and Houthis remain prevalent in both key chokepoints, keeping oil prices supported in the near term," said June Goh, senior oil analyst at Sparta Commodities, as quoted by Reuters. Goh added that Gulf producers are exploring alternative export routes to mitigate risks, potentially increasing shut-in production if sustained.
Saudi Arabia has taken steps to diversify export channels, with Saudi Aramco marketing crude cargoes from Oman-based terminals such as Sohar via ship-to-ship transfers. ING’s commodity team noted in a Tuesday update that the move signals efforts to expand export routes outside the Persian Gulf, reducing reliance on the Hormuz strait.
