Oil Rises To Three Week High As UAE Halts All Economic Ties With Iran
Oil prices reached a three-week high following the UAE's decision to halt economic ties with Iran and ongoing tensions in the Strait of Hormuz. Analysts suggest that market volatility will likely continue due to the geopolitical impasse between the U.S. and Iran.
Why it matters
Energy market fluctuations directly impact global inflation and household utility costs, particularly in the UK.
Also, more ships are transiting the Hormuz than the Islamic republic cares to admit: File Image/Pixabay
The continuing battle of wills between the U.S. and Iran, in which the latter reiterated its claim of control over the Strait of Hormuz and the former ruled out extending the now-elapsed 60-day ceasefire, caused oil prices on Wednesday to settle at their highest level in over three weeks.
Brent settled up 15 cents at $91.02 per barrel, and West Texas Intermediate settled up 44 cents at $84.94 per barrel, the highest closings since July 24.
However, the relatively tepid daily trading performance was likely the result of more movement through the Hormuz than the Islamic republic would care to admit.
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