Middle East Ship Attacks Fuel Oil Price Surge

Oil prices rose on Wednesday as attacks on two ships in the Middle East heightened concerns over disruptions to supplies. The Brent futures price was up 17 cents, or 0.2%, at $89.08 a barrel by 1055 GMT, heading for a sixth day of gains.

The U.S. West Texas Intermediate (WTI) crude rose 20 cents, or 0.2%, to $83.40, also heading for a fifth daily gain. The attacks on the ships in the Strait of Hormuz and the Bab el-Mandeb Strait have reduced the number of vessels transiting through the critical waterway.

Before the war, 125 to 140 vessels passed through the strait each day. Industry sources indicate that U.S. crude stockpile data may have swelled, but the gains in oil prices resumed after a senior Iranian source told Reuters there were no discussions between Iran and the United States to extend their ceasefire.

The country's National Oil Corporation also reported that all fires at fuel storage tanks in the Zawiya oil complex were under control. The Energy Information Administration (EIA) expects significant disruptions to Middle East crude supplies to persist through the end of 2027.