Oil prices climbed for a fourth straight day on Wednesday, as global markets kept worrying about supply. Brent crude rose 26 cents to $91.28 a barrel, while US crude, known as WTI, rose 37 cents to $85.31 a barrel. The rise comes as the US and Iran keep giving conflicting statements about whether the Strait of Hormuz, a key route for the world’s oil shipments, is open.
Why Prices Keep Climbing
Both Brent and WTI closed at their highest levels since July 24 on Tuesday, as hopes for a US-Iran peace deal weakened.
- President Donald Trump said on Tuesday that Washington was not holding talks with Iran. He also said the Strait of Hormuz remained open.
- Iran, on the other hand, kept saying the route stays closed to ships.
- A temporary ceasefire between the two countries ended on Monday, adding to the uncertainty.
- A senior Iranian official told Reuters that Iran is preparing to respond to the deadlock. Neither side reported new strikes on Tuesday.
Countries Are Rerouting Their Oil
Iraq’s cabinet approved a new system to export crude through international and local companies, using routes that skip the Strait of Hormuz entirely. These new export contracts run for three months, starting September 1.
Two major Chinese shipping companies stopped sending oil tankers through the Strait of Hormuz and the Bab el-Mandeb Strait. They started collecting oil cargo from outside the Gulf instead, according to industry executives, tanker trackers, and a ship broker.
