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EMEA Oil Update: Brent Hover Near 3-Weeks Peak as Supply Concerns Persist

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Brent futures extended gains for a fourth day on Wednesday supported by ongoing tensions in the Middle East while traders awaited crude inventory data from the US Energy Information Administration.

Brent gained 0.5% to $91.46 per barrel and hit its highest since July 30 on Tuesday, while Murban crude futures closed at $97.75/bbl and were not trading at the time of publication of this update.

"US-Iran tensions remain high, keeping supply risks elevated and the Strait of Hormuz constrained. Trump says there are no talks with Tehran and confirms the US naval blockade. Despite claims the waterway is open, traffic remains limited," Saxo Bank analysts noted.

On Tuesday, the UK Maritime Trade Operations reported that two commercial vessels were struck by unknown projectiles while transiting the Strait of Hormuz.

Compounding these maritime risks, the UAE Ministry of Defense announced that its air defenses detected two ballistic missiles launched from Iran, with one landing in territorial waters and another outside.

These physical disruptions continue to restrict vital energy shipping lanes. Commercial traffic through the Strait of Hormuz and the Bab el-Mandeb Strait remains heavily constrained.

President Trump said on Tuesday no talks were taking place with Iran, and none were scheduled, while insisting that the strait was open, contradicting an earlier Iranian assertion that the strategic waterway remained shut to shipping.

Meanwhile, supply pressures are being reinforced by developments outside the region, as Bloomberg reported that Russian crude exports fell for a fifth straight week through Aug. 16 to their lowest level since April.

Data from the American Petroleum Institute revealed Tuesday that US crude oil inventories dropped by 328,000 barrels in the week ended Aug. 14.

The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.

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