Oil Prices Soar Amid U.S.-Iran Deal Doubts and Strait of Hormuz Attacks

Oil prices rose on Wednesday as doubts about a U.S.-Iran peace deal and attacks on two ships fueled concerns about disruptions to Middle East supplies. Brent futures climbed 0.84% to $89.66 a barrel, while U.S. West Texas Intermediate (WTI) crude surged 0.87% to $83.92.

The price increase followed Monday's 5% jump as hopes for a peace deal between the United States and Iran began to fade. President Trump issued a new demand that Iran offer compensation for those killed in wars, attacks, and protests.

Priyanka Sachdeva, head of market insights for Phillip Nova, said 'The Middle East is increasingly becoming a seesaw between “deal” and “war”, keeping oil prices swinging like a pendulum between $70 and $90 a barrel.'