West Texas Intermediate (WTI), futures on NYMEX, trade 0.55% higher at around $84.80 during the European trading session on Wednesday.
The oil price remains firm as fears of prolonged energy supply disruption remain intact amid the deadlock between the United States (US) and Iran regarding the reopening of the Strait of Hormuz, a vital passage to almost one-fifth of energy supply
On Tuesday, US President Donald Trump confirmed, through a post on Truth Social, that Washington is not having any talks with Iran regarding the Hormuz reopening, nor are any discussions scheduled. “There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran. The Naval Blockade remains in full force and effect. The Hormuz Strait is open and operating.
All water mines have been removed or detonated,” US President Trump wrote. According to data from Kpler, six commodity vessels crossed the strait on Tuesday, down from nine a day earlier and below the 10-day daily average of 11, Reuters reported. This remains a massive decline from pre-war levels of 130 to 140 ships daily.