Oil Prices Surge on Ship Attacks and Iran War Talks Deadlock
Oil prices rose in volatile trade on Wednesday after attacks on two ships reinforced worries about disruptions to Middle East supplies and as talks to end the Iran war hit an impasse.
The US and Houthis attacked ships in the Gulf and Red Sea straits, respectively. The number of vessels transiting the Strait of Hormuz fell to a one-week low of eight on Tuesday, down from 125-140 vessels before the war.
Brent futures rose 35 cents or 0.4% to $89.26 a barrel by 1219 GMT, heading for a sixth day of gains. US West Texas Intermediate (WTI) crude rose 57 cents or 0.7% to $83.77, also heading for a fifth daily gain.
US crude inventories rose sharply, but gasoline and distillate stocks fell, according to American Petroleum Institute data. The build in crude stocks far exceeded expectations, which could ease market concerns about supply tightness.