Oil hits three-week high amid Strait of Hormuz uncertainty

Oil prices rose to their highest levels in three weeks as uncertainty over shipping through the Strait of Hormuz and ongoing supply disruptions supported the market.

Brent crude futures rose 54 cents, or 0.59%, to $91.56 a barrel by 1157 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 59 cents, or 0.69%, to $85.53 a barrel.

Brent reached its highest level since July 30, while WTI climbed to its highest since July 31.

"Confidence in safe navigation remains low, and shipping volumes are still well below normal levels. That lingering uncertainty continues to keep a geopolitical risk premium priced into oil," said Tim Waterer, chief market analyst at KCM.

U.S. President Donald Trump said on Tuesday that no talks with Iran were taking place and that the Strait of Hormuz was open, contradicting Tehran's assertion that the waterway remained closed.

A temporary ceasefire agreement expired on Monday, and a senior Iranian official told Reuters that the country was adopting a "fully offensive" military posture amid the diplomatic deadlock. However, there were no reports of attacks by either side on Tuesday.

Around one-fifth of global oil and liquefied natural gas supplies passed through the Strait of Hormuz before the war began in late February. Disruption to the key waterway remains a major concern for energy markets.

"Commercial shipping through Hormuz continues to face near-total disruption, while disagreements persist over the conditions governing maritime traffic," said Ahmad Assiri, research strategist at brokerage Pepperstone.

Shipping traffic through the Strait of Hormuz slowed further, according to data released on Wednesday, as most shipowners continued to avoid the waterway amid ongoing uncertainty.