Key facts
- Brent crude prices rose above $89 per barrel, nearing $90, due to U.S.-Iran tensions.
- Iran stated the Strait of Hormuz will remain closed unless the U.S. meets its conditions.
- President Trump asserted U.S. "total control" over the Strait of Hormuz.
- Traffic through the Strait of Hormuz has declined amid security concerns.
- U.S. crude inventories reportedly rose by 9.1 million barrels, while gasoline and distillate stocks fell.
Oil prices climbed on Wednesday, with Brent crude nearing $90 per barrel and WTI crude trading around $83.90, as traders priced in risks of supply disruptions from escalating U.S.-Iran tensions. Iran indicated the Strait of Hormuz would remain closed unless the United States meets its conditions, including ending the war and releasing frozen assets. This contrasts with U.S. President Donald Trump's assertion of "total control" over the vital waterway. Despite claims of normalized traffic, ship-tracking data suggests a decline in vessel movement through the Strait of Hormuz amid heightened security concerns. Earlier in the week, oil prices had already risen due to fading hopes for a U.S.-Iran peace deal and reported attacks on shipping in the region. On the supply side, preliminary data from the American Petroleum Institute indicated a significant rise in U.S. crude inventories by approximately 9.1 million barrels for the week ended August 7, while gasoline and distillate stocks fell.