Brent crude prices remained elevated overnight into Wednesday, defying a potential policy reprieve from Washington.
The resilience in energy markets comes despite reports that US President Donald Trump signaled a reversal of the decision to impose a 20 percent tariff on oil transiting the Strait of Hormuz.
The market’s refusal to discount the geopolitical premium underscores the severity of ongoing security threats in the region.
Attacks on Iran and across the Middle East continue to disrupt the perception of safe passage, keeping a lid on any significant price correction.
Traders appear to be prioritizing the immediate physical risk to supply chains over the prospect of reduced trade barriers.
This development marks a shift in the narrative surrounding the Strait of Hormuz, a critical chokepoint for global energy flows.