Oil prices rise for fourth day as Hormuz shipping dispute deepens

Oil prices extended their gains for a fourth consecutive session on Wednesday, as traders weighed conflicting signals from Washington and Tehran over the status of the Strait of Hormuz, a critical chokepoint for global crude shipments.

Brent crude futures added 26 cents, or 0.29%, to $91.28 per barrel, while US West Texas Intermediate (WTI) crude rose 37 cents to $85.31. Both benchmarks had settled on Tuesday at their highest levels since July 24, as hopes for a diplomatic breakthrough between the US and Iran faded.

US President Donald Trump said on Tuesday that no talks were underway with Iran and reiterated that the Strait of Hormuz remained open to shipping. This directly contradicted Tehran's assertion that the waterway was effectively closed to vessels.

A temporary ceasefire between the two nations expired on Monday, and a senior Iranian official indicated that the country was shifting to a "fully offensive" military posture due to the diplomatic impasse. No fresh strikes were reported on Tuesday.

In response to the heightened risk, Iraq's cabinet approved a plan to export its crude through specialized international and local companies using multiple outlets, bypassing the Strait of Hormuz. The new contracts are set to run for three months starting September 1.

Separately, two major Chinese shipping firms have stopped sending oil tankers through Hormuz and the Bab al-Mandeb strait, opting instead to collect cargoes outside the Gulf, according to industry sources.

On the inventory front, US crude and distillate stockpiles fell last week, while gasoline inventories rose, according to the American Petroleum Institute. Official data from the US Energy Information Administration is due later on Wednesday, with analysts expecting a draw of about 600,000 barrels in crude stocks for the week ended August 14.