Oil Prices Spike Amid Fatal Attacks in Red Sea

Crude oil prices surged on Wednesday after fatal attacks on cargo vessels in the Red Sea and Gulf of Oman, undermining optimism over diplomatic talks to unblock the Strait of Hormuz.

Brent crude futures climbed by approximately 1.24 per cent to reach US$90 a barrel, while US West Texas Intermediate crude futures advanced 1.3 per cent to US$84.30 a barrel.

The market disruption follows a sharp escalation in maritime violence after Iran-backed Houthi rebels killed six people in a strike on a merchant vessel in the Bab el-Mandeb Strait on Tuesday.

Interactive Brokers senior economist José Torres observed that anxieties regarding Middle Eastern supply disruption remained dominant, despite indications that Washington and Tehran may be moving towards a compromise over the Strait of Hormuz.