Global crude benchmarks surged to a three-week high on Wednesday as escalating transit uncertainty through the Strait of Hormuz and persistent production outages triggered renewed geopolitical risk premiums across international energy markets.
Brent crude rose 77 cents, or 0.85%, to $91.79 a barrel, while U.S. West Texas Intermediate (WTI) gained 85 cents, or 1%, reaching $85.79 a barrel, recording a fourth consecutive session of price gains.
The market rally reflects conflicting statements from Washington and Tehran regarding vessel safety along the crucial maritime corridor, through which approximately 20% of the world’s daily petroleum supply typically transits.
Tensions escalated sharply following the expiration of a two-month diplomatic negotiation window, alongside reported attacks on regional commercial vessels and Chinese shipping conglomerates rerouting tankers away from Persian Gulf chokepoints.
Bullish momentum was further sustained by tightening fundamentals, supported by unexpected drawdowns in U.S. crude and distillate inventories alongside persistent supply disruptions across key producer nations.
