US-Iran Deal Uncertainty Sends Oil Prices Soaring
Oil prices rose on Wednesday morning as doubts about a U.S.-Iran peace deal and attacks on two ships fueled concerns over Middle East supply disruptions. Brent futures gained 72 cents, or 0.81%, to $89.63 a barrel by 0053 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 71 cents, or 0.85%, to $83.91.
The United States and Yemen's Iran-aligned Houthis reported separate attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait on Tuesday. Mohsen Rezaei, Iran's top security official, said that the vital Strait of Hormuz shipping route would remain closed unless the U.S. accepted Iran's conditions for ending the war.
A Reuters poll showed that U.S. crude oil and fuel inventories were expected to have fallen last week, but American Petroleum Institute data indicated a sharp rise in U.S. crude inventories instead. If confirmed by the EIA report later on Wednesday, this could ease market concerns about supply tightness.