Oil prices rose on Wednesday as uncertainty over a potential U.S.-Iran peace deal and attacks on shipping vessels heightened concerns over disruptions to crude supplies from the Middle East.
Brent crude futures gained $0.72, or 0.81%, to $89.63 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $0.71, or 0.85%, to $83.91 by 0053 GMT.
Both benchmarks settled more than $1 higher on Tuesday, reaching their highest closing levels since July 31. Oil prices had also jumped around 5% on Monday as hopes for a U.S.-Iran peace agreement weakened.
The United States and Iran-aligned Houthi forces reported separate attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait on Tuesday, adding to concerns over the security of key oil supply routes.
Iranian security official Mohsen Rezaei said the Strait of Hormuz would remain closed unless the United States accepted Iran’s conditions for ending the conflict.
Meanwhile, U.S. crude inventories reportedly rose by around 9.1 million barrels last week, significantly exceeding market expectations. Gasoline and distillate inventories, however, declined.
The U.S. Energy Information Administration (EIA) was expected to release official inventory figures later on Wednesday.
The EIA has forecast that disruptions of around 600,000 barrels per day to Middle East crude supplies could continue through the end of 2027.
Source: Reuters
