Oil prices rise as Hormuz shipping remains restricted

Oil prices trended higher on Wednesday as shipping bottlenecks in the Strait of Hormuz persisted, countering optimism regarding potential diplomatic talks between the United States and Iran. Brent Crude Oil futures rose by 0.8% to $95.50 per barrel, while West Texas Intermediate crude gained 0.6% to reach $91.78.

The recovery follows a sharp decline in the previous session, driven by hopes that a resolution to the regional conflict might be near. However, the physical reality of energy transport remains constrained. Approximately 45 days after the closure of the strait, which handles nearly 20% of global oil and Natural Gas shipments, daily traffic remains at a fraction of its normal volume.