Oil prices continued to increase on Wednesday, driven by expectations that ongoing uncertainty in the Strait of Hormuz could further tighten global supply.
International benchmark Brent crude traded at $105.41 per barrel at 9.50 p.m. local time (0650 GMT), up around 0.9% from the previous close of $104.9.
US benchmark West Texas Intermediate also increased about 0.5% to $100.50 per barrel, compared with $99.93 in the previous session.
TheUnited Nations said ship transits through the Strait of Hormuz have fallen by 95.3% since the start of the US-Israel and Iran war due to restrictions in the waterway.
US President Donald Trump claimed that the Iranian administration had “requested” that Washington lift the blockade in the Strait. In a post on social media, Trump also alleged that Tehran had informed him that “the system in Iran is on the verge of collapse.”
As tensions in the Strait of Hormuz continue, 52 Iranian vessels were reported to have crossed the US blockade line within the past 72 hours.
The Strait’s closure to maritime traffic for more than eight weeks has heightened supply concerns in the markets and strengthened expectations that the crisis could be prolonged, supporting the upward movement in prices.
Ongoing uncertainty in US-Iran talks is also contributing to the rise in prices. US-based news outlet Axios reported that there is no near-term prospect for the war to come to an end, which began with US and Israeli attacks on Iran.
In its report, Axios said the US/Israel-Iran war had entered a phase resembling the “Cold War era.” Describing the situation between the sides as a “deadlock,” the report noted that no end to the conflict was visible on the horizon.
Iranian army spokesperson also said that despite the ceasefire, war conditions still apply for Tehran as they do not trust the US.
