Oil prices reached their highest levels in more than three weeks on 20 August as disruption around the Strait of Hormuz continued to tighten supply and elevate market risk.

Reuters reported that Brent crude rose to $93.82 a barrel and US West Texas Intermediate to $88.16 during Thursday trading, with both benchmarks at their highest since 24 July. The prices were reported in a market that remains highly sensitive to developments in the wider conflict and to the flow of cargoes through the waterway.

The International Energy Agency said in its August Oil Market Report that the key passageway had effectively closed again in early July and that regional exports, including routes designed to bypass the strait, had fallen sharply. The IEA also cut its supply outlook and warned that inventory buffers were being depleted. Market prices, vessel traffic and official transit announcements continue to move quickly.