US-Iran Tensions Fuel Oil Price Rise Amid Shipping Attacks

Oil prices rose in early trading on Wednesday as uncertainty over a possible US-Iran peace deal and attacks on two ships raised concerns about energy supply disruptions from the Middle East. The gains come despite industry data showing US crude inventories increased, suggesting supply risks linked to the conflict outweighed signs of stronger domestic stockpiles.

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. Both benchmark contracts settled more than $1 higher on Tuesday, marking their highest closes since July 31 and extending gains after jumping about 5% on Monday as hopes for a peace deal between the US and Iran began to fade.

The United States and Yemen's Iran-aligned Houthis reported separate attacks on shipping in the Strait of Hormuz and Bab el-Mandeb Strait on Tuesday. Iran's top security official, Mohsen Rezaei, said the vital Strait of Hormuz shipping route would remain closed unless the US accepted Iran's conditions for ending the war, including the release of frozen Iranian assets and an end to other conflicts across the region.