Oil Extends 4-Day Rally after Hormuz Shock

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Oil prices moved higher after Iran’s Revolutionary Guard said it has taken control of the Strait of Hormuz and warned ships not to pass through the route. The development raised new concerns about global oil supply and increased fears of a wider conflict in the Middle East.

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Following the development, Brent crude prices extended a four-day rally, rising 2.65% to $83.60 per barrel on Wednesday, hovering near the highest level since January 2025. U.S. West Texas Intermediate (WTI) crude also climbed for a third straight session to $76.45. The rise in prices is putting major oil producers such as Exxon Mobil XOM -1.55% ▼ and Chevron CVX -0.44% ▼ in focus.

Why the Strait of Hormuz Matters

Iran lies next to the Strait of Hormuz, a narrow waterway that carries a large share of the world’s oil shipments. The route handles a significant portion of global crude exports, making it one of the most important chokepoints in the energy market.

Because so much oil passes through this corridor, any threat to tanker traffic can quickly push prices higher. Analysts said that if tanker traffic remains limited, oil prices could stay elevated in the near term.

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