Brent and WTI Surge Past $91 Amid Renewed Strait of Hormuz Supply Risks
Brent and US West Texas Intermediate futures rose on Wednesday as renewed geopolitical risks in the Strait of Hormuz rattled global energy markets. Energy traders and financial institutions faced mounting supply concerns following fresh tanker incidents and escalating friction between Washington and Tehran.
Naeem Aslam, chief investment officer at Zaye Capital Markets, noted that the immediate driver for the price action is a renewed geopolitical supply premium rather than stronger global consumption.
Brent crude futures climbed 87 cents, or nearly one per cent, to settle at $91.89 at 1600 GMT on Wednesday. US West Texas Intermediate crude futures advanced $1.17, or 1.4 per cent, reaching $86.11 a barrel. The upward pressure followed an incident in which a tanker struck a mine and caught fire in the Strait of Hormuz, alongside a separate vessel being damaged in UAE waters where Adnoc confirmed that response efforts remain ongoing. Meanwhile, a drone attack caused a fire at the Russian Baltic Sea port of Ust-Luga, compounding physical supply fears across multiple transport corridors.
Uncertainty intensified as US President Donald Trump warned Oman against interfering with US shipping policy while reiterating claims over control of the Strait, while Iran maintained that no nuclear material will leave the country. Progress toward reopening the strait has stalled, keeping tanker movements constrained and increasing the probability that investors assign to prolonged disruptions of Gulf exports.
