Market Movement
Oil prices rose on Wednesday, with the global benchmark Brent crude futures for October gaining 0.6% to $91.54 a barrel, the highest level since July 24. U.S. West Texas Intermediate (WTI) October futures increased 0.3% to $84.27 a barrel, also marking a peak not seen since July 31.
Geopolitical Context
The price uplift occurred as the United States and Iran remained at an impasse over the management of the Strait of Hormuz, a vital maritime chokepoint. President Donald Trump reiterated that no talks with Iran were scheduled and that a U.S. naval blockade remained in force, while Tehran denied any negotiations. An interim memorandum of understanding signed in mid‑June had already expired in July. Trump asserted U.S. “complete control of the strait” and suggested that alternative supplies from Texas, Alaska and Louisiana were mitigating the risk of oil prices spiking to extreme levels.
Shipping Traffic Data
Despite Trump’s claim of “a lot of boats” crossing the strait, data from the analytics firm Kpler indicated a 17% decline in confirmed vessel crossings, with only ten vessels recorded on Tuesday and a low of three the previous Sunday.
Regional Diplomatic Actions
The United Arab Emirates’ foreign ministry announced a halt to all trade, commercial exchange, and financial transactions with Iran after detecting two Iranian ballistic missiles aimed at maritime navigation.
U.S. Commercial Crude Inventories
Data from the U.S. Energy Information Administration (EIA) showed that commercial crude oil inventories, excluding the Strategic Petroleum Reserve, rose by 4.4 million barrels in the week of August 14, reaching a total of 428.8 million barrels – the highest level since May 29 and well above the market expectation of a 200,000‑barrel build. Including the SPR, overall inventories fell by 900,000 barrels to 722.2 million barrels, the lowest level since April 1984. At the Cushing, Oklahoma hub, stocks declined by 1.3 million barrels to 21.3 million barrels.