Oil settles near 4-week high as Middle East crisis escalates

Published Aug 19, 07:12 PM UTC

Crude oil prices rose on Wednesday, settling at their highest in nearly four weeks, driven by escalating tensions in the Middle East. The United Arab Emirates suspended all financial and economic transactions with Iran following recent missile attacks, while ship traffic through the Strait of Hormuz remained slow. Brent crude futures settled at $91.62 a barrel, up 0.7%, and U.S. West Texas Intermediate crude rose 1.1% to $85.83. A temporary ceasefire expired on Monday, and a senior Iranian official said the country was moving to a 'fully offensive' military posture due to the diplomatic stalemate. Iran is reportedly eyeing military targets in Europe if the U.S. escalates the war. Only six commodity vessels crossed the Strait of Hormuz on Tuesday, down from nine a day earlier. Meanwhile, Russian oil shipments from western ports fell 15% in early August due to disruptions at the Black Sea port of Novorossiysk. In the U.S., crude inventories rose by 4.4 million barrels, easing supply concerns.