Oil Prices Surge on US-Iran Deal Doubts and Middle East Supply Concerns

Oil prices rose on Wednesday morning due to growing concerns about supply disruptions in the Middle East. The price of Brent futures gained 72 cents, or 0.81%, to $89.63 a barrel by 0053 GMT, while US West Texas Intermediate (WTI) crude climbed 71 cents, or 0.85%, to $83.91.

The increase in oil prices is attributed to doubts over the US-Iran peace deal and attacks on shipping in key Middle East lanes. Iran's top security official, Mohsen Rezaei, stated that the Strait of Hormuz would remain closed unless the US accepted Iran's conditions for ending the war, including the release of frozen assets.

Shipping data showed a significant drop in traffic through the Strait of Hormuz, with only six vessels passing through on Monday compared to the 10-day average of about 11. Before the war, daily traffic averaged 125 to 140 vessels.