US-Iran Deal Uncertainty Drives Oil Prices Higher Amid Middle East Tensions

Oil prices rose on Wednesday as doubts about a US-Iran peace deal and attacks on two ships fueled concerns about disruptions to Middle East supplies.

Brent futures were up 75 cents, or 0.84 per cent, to $89.66 a barrel by 0553 GMT, while US West Texas Intermediate (WTI) crude climbed 72 cents, or 0.87 per cent, to $83.92.

The uncertainty surrounding the deal and the recent attacks on shipping in the Strait of Hormuz have heightened supply concerns, with market sources citing American Petroleum Institute data that showed US crude inventories rose sharply in the week ended August 7.

Crude stocks rose by about 9.1 million barrels, while gasoline and distillate inventories fell by 1.5 million barrels and 596,000 barrels, respectively, from the previous week.