Oil price hits 3-week high

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HOUSTON: Global crude prices rose more than one per cent on Wednesday and were trading near a three-week high hit during the session, as investors worried about escalating tensions in the Middle East after the United Arab Emirates decided to suspend all financial and economic transactions with Iran.

Shipping through the Strait of Hormuz also remained slow, data showed, as most ship owners avoided the waterway due to a lack of clear signalling about its reopening after a blockade during the Iran war.

Brent crude futures were up $1.17, or nearly 1.3pc, at $92.21 at 1:41 p.m. ET (1741 GMT). US West Texas Intermediate crude futures were $1.51, or 1.8pc higher, at $86.45 a barrel. Brent’s session high was its highest since July 30, and WTI reached its highest since July 24.

“Crude futures remain supported by the geopolitical tensions that remain in the Middle East, now with the UAE stating they have cut off all financial ties to Iran due to the latest missile attacks,” said Dennis Kissler, senior vice president of trading at BOK Financial.

Brent’s move above $91 a barrel suggests traders are pricing in a higher risk premium, with prices potentially returning to three-digit levels, said Ahmad Assiri, research strategist at brokerage Pepperstone.

Meanwhile, oil shipments from Russia’s western ports have fallen to about 2.3 million barrels per day in the first half of August, 15pc below the initial loading plan, because of disruptions at the Black Sea port of Novorossiysk. In the US, crude inventories rose by 4.4 million barrels to 428.8 million barrels last week, the Energy Information Administration said.

Published in Dawn, August 20th, 2026

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