Oil Prices Soar as Middle East Tensions Escalate
Commodity markets traded mixed on August 12, with oil prices rising amid concerns over Middle East supply disruptions. Brent futures gained $0.72, or 0.81%, to $89.63 a barrel, while U.S. West Texas Intermediate (WTI) crude climbed $0.71, or 0.85%, to $83.91.
The increase in oil prices came as doubts about a U.S.-Iran peace deal and attacks on two ships fueled concerns about Middle East supply disruptions. Industry data showed that U.S. crude inventories expanded.
Gold, however, remained steady as traders weighed the prospects for a deal to reopen the Strait of Hormuz while awaiting US inflation data that could provide fresh clues to the Federal Reserve's interest-rate path.
Bullion was near $4,370 an ounce in early trading, after pulling back from a two-month high on Tuesday to end the session down 0.5%.