Oil prices extended gains for a fourth consecutive session on Wednesday as tensions between the United States and Iran over the Strait of Hormuz showed little sign of easing.
The prolonged standoff has strengthened concerns that global oil supplies could remain constrained in the coming months.
Brent and WTI Trade Near Three-Week Highs
Benchmark Brent crude futures rose 0.3% to $91.32 per barrel by 04:43 ET, while U.S. West Texas Intermediate crude gained 0.4% to $85.28 per barrel.
Both contracts have posted strong gains this week and are trading close to three-week highs.
The latest move reflects growing concern that disruptions around the Strait of Hormuz could affect global energy flows.
Strait of Hormuz Traffic Slows
Shipping activity through the Strait of Hormuz has declined as uncertainty continues over whether the vital waterway is fully operational.
According to Kpler data cited by Reuters, only six commodity vessels crossed the strait on Tuesday.
That compares with nine vessels a day earlier and a 10-day daily average of 11 ships.
ING analysts said the decline in vessel traffic has increased fears of potential oil supply disruptions.
U.S. and UAE Discuss Gulf Security
U.S. Secretary of State Marco Rubio reportedly spoke with UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan about security in the Gulf.
According to Al Jazeera, both officials stressed the importance of maintaining freedom of navigation through the Strait of Hormuz.
The waterway remains critical to the global energy market because a significant share of international oil shipments normally passes through it.
U.S. and Iran Disagree Over Hormuz Status
U.S. President Donald Trump said on Tuesday that no negotiations with Iran were taking place and that no talks had been scheduled.
However, Trump maintained that the Strait of Hormuz remained open.
Iranian officials have disputed that claim.
Tehran has also said that negotiations with Washington are not underway, while insisting that the strait will remain closed until the United States meets the conditions of an interim agreement signed in June.
That framework expired this week, with neither side indicating plans to renew it.
Oil Market Focuses on Supply Risks
The lack of progress between Washington and Tehran has increased uncertainty over future oil supplies.
Any prolonged disruption in the Strait of Hormuz could restrict the movement of crude oil and other energy products, placing further upward pressure on prices.
As a result, traders are closely monitoring vessel movements, diplomatic developments and any signs of renewed negotiations.
U.S. Oil Inventories Decline
Oil prices also received support from preliminary U.S. inventory data.
The American Petroleum Institute reported a modest decline in U.S. crude inventories last week, reinforcing expectations of tighter supply conditions.
Official U.S. inventory figures are due later on Wednesday and could provide further direction for crude prices.
ING analysts described the API report as slightly supportive for the oil market.
Strategic Petroleum Reserve Remains Low
Recent data have also pointed to reduced levels in the U.S. Strategic Petroleum Reserve.
According to the supplied figures, reserves have fallen to their lowest level in more than four decades amid pressures linked to the Iran conflict.
Lower inventories combined with geopolitical supply risks could make the oil market more sensitive to any new disruption.
Oil Price Outlook Remains Tied to Hormuz
The outlook for crude oil remains closely connected to developments in the Strait of Hormuz.
With shipping traffic slowing, U.S.-Iran negotiations stalled and inventories tightening, traders are increasingly focused on the possibility of prolonged supply constraints.
Further escalation could keep Brent and WTI prices elevated, while signs of renewed diplomacy or improved shipping activity could ease some of the current risk premium.
