Brent Climbs to $91.62 as UAE Cuts Iran Ties and Hormuz Traffic Stays Slow
Updated
Updated · CNBC · Aug 19
Brent Climbs to $91.62 as UAE Cuts Iran Ties and Hormuz Traffic Stays Slow
3 articles · Updated · CNBC · Aug 19
Summary
$91.62 Brent and $85.83 WTI settlements capped another gain as traders added geopolitical risk premium after the UAE suspended all financial and economic transactions with Iran.
Hormuz shipping remained sluggish despite Trump's claim the strait was open, while Iran said it was still shut and shipowners largely stayed away without clear reopening signals.
About one-fifth of global oil and LNG flows normally pass through the strait, and analysts said Brent above $91 points to rising odds of a return to three-digit prices.
Supply strains extended beyond the Gulf: Russia's western port loadings fell to about 2.3 million barrels a day in early August, 15% below plan.
U.S. crude inventories rose 4.4 million barrels to 428.8 million, but strong refining demand persisted as utilization climbed to 97.2% and global fuel supplies stayed tight.