Iran Strait Threat Boosts Oil Prices as US-Iran Deal Doubts Rise

Oil prices rose on Wednesday morning as doubts about a U.S.-Iran peace deal and attacks on two ships fueled concerns over Middle East supply disruptions. Brent futures gained $0.72, or 0.81%, to $89.63 a barrel by 0053 GMT, while U.S. West Texas Intermediate (WTI) crude climbed $0.71, or 0.85%, to $83.91.

The attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait on Tuesday were reported by the United States and Yemen's Iran-aligned Houthis. Mohsen Rezaei, Iran's top security official, said that the vital Strait of Hormuz shipping route would remain closed unless the U.S. accepted Iran's conditions for ending the war, including the release of frozen Iranian assets and an end to other conflicts across the region.

However, a Reuters poll showed on Tuesday that U.S. crude oil and fuel inventories were expected to have fallen last week. But American Petroleum Institute data revealed a sharp rise in U.S. crude inventories, which could ease market concerns about supply tightness.