US-Iran Deal Hopes Faded as Oil Prices Rise on Disruption Concerns
Oil prices rose on Wednesday as doubts about a US-Iran peace deal and attacks on two ships fueled concerns over Middle East supply disruptions.
Brent futures gained $0.72, or 0.81%, to $89.63 a barrel by 0053 GMT, while US West Texas Intermediate (WTI) crude climbed $0.71, or 0.85%, to $83.91.
The attacks on the Strait of Hormuz and Bab el-Mandeb Strait, as well as Iran's top security official Mohsen Rezaei's statement that the vital shipping route would remain closed unless US conditions were met, contributed to the price increase.
A Reuters poll showed US crude oil and fuel inventories were expected to have fallen last week, but American Petroleum Institute data indicated a sharp rise in US crude inventories of 9.1 million barrels, easing market concerns about supply tightness.