Oil Prices Surge as Middle East Tensions Escalate
Oil prices rose on Wednesday as concerns about Middle East supply disruptions intensified due to doubts over a US-Iran peace deal and attacks on shipping in key waterways.
Brent futures gained $0.72, or 0.81%, to reach $89.63 a barrel by 0053 GMT, while US West Texas Intermediate (WTI) crude climbed $0.71, or 0.85%, to $83.91.
The market sentiment shifted on Monday as hopes for the peace deal between the US and Iran began to fade, leading to a 5% surge in oil prices.
Iran's top security official, Mohsen Rezaei, stated that the Strait of Hormuz shipping route would remain closed unless the US accepted Iran's conditions, which include the release of frozen Iranian assets and an end to other conflicts across the region.
Shipping data showed a significant drop in traffic through the Strait of Hormuz on Monday, with only six vessels passing through compared to a 10-day average of about 11.