Oil prices climbed to their highest level in over three weeks on Wednesday as tensions between the United States and Iran continued, compounded by the United Arab Emirates severing all economic relations with Tehran, according to Ship & Bunker.
Brent crude settled up 15 cents at $91.02 per barrel, while West Texas Intermediate rose 44 cents to $84.94 per barrel, marking the highest closing prices since July 24, Ship & Bunker reported.
Standoff Over the Strait of Hormuz
According to Ship & Bunker, the price movement followed renewed friction between Washington and Tehran, with Iran reiterating claims of control over the Strait of Hormuz and the United States ruling out an extension of the expired 60-day ceasefire.
Despite the tension, daily trading remained relatively muted. Ship & Bunker cited Darrell Fletcher, managing director of commodities at Bannockburn Capital Markets, who said the market has grown somewhat desensitized to daily headlines given the lack of concrete developments since June. Fletcher noted that “covert or dark shipments slipping from the Strait of Hormuz seem to be more than the market expected,” which he said helped buffer prices from rising further.
Ship & Bunker also reported that Saudi Aramco resumed oil loadings from within the Strait and offered cargoes via ship-to-ship transfers off Fujairah in the UAE, while two Chinese shipping companies began collecting cargoes outside the Gulf.
Mohit Kumar, an economist at Jefferies, told Ship & Bunker that neither Washington nor Tehran has yet reached a point where a deal becomes necessary, adding: “We see further pain in the near term and upward pressure on oil prices.”
UAE Severs Ties With Iran
In a development Ship & Bunker described as a potential blow to Iran’s regional standing, the UAE halted all economic ties with its neighbor following what was reported as a botched Iranian ballistic missile strike. The suspension reportedly covers all trade, commercial exchanges, and financial transactions between the two countries.
According to World Trade Organization data cited by Ship & Bunker, the UAE supplied 31 percent of Iran’s imports in 2024, valued at roughly $21 billion, and received 13 percent of Iran’s exports.
Separately, Ship & Bunker noted that Cornwall Insight reported UK household energy bills are set to rise a further 4 percent from October, reaching their highest level since summer 2023, after already increasing 13 percent between July and September 2026.
Does This Matter to You?
For those monitoring bunker markets and vessel routing through the Gulf, developments around the Strait of Hormuz remain a key factor in fuel price volatility and transit risk assessment. The reported resumption of loadings by Saudi Aramco and continued ship-to-ship transfers off Fujairah, as noted by Ship & Bunker, suggest that operational flows through the region have continued despite the political standoff.
The UAE’s suspension of economic ties with Iran could have broader implications for regional trade patterns, though the source material does not specify direct effects on bunkering operations or vessel traffic beyond the reported increase in Hormuz transits. Any further escalation between the U.S. and Iran, as suggested by Jefferies’ Mohit Kumar, could continue to exert upward pressure on oil prices, a factor directly relevant to fuel procurement and cost planning.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
