Oil rises, fresh shipping attacks weaken US-Iran peace hopes

Crude oil futures moved higher on Wednesday after new assaults on ships in the Middle East stoked worries about supply interruptions. Mettis Global data showed Brent up 1.63 per cent at $89.67 per barrel, while West Texas Intermediate rose $1.30 to $83.98 per barrel. Reuters reported separate incidents involving vessels in the Strait of Hormuz and Bab el-Mandeb, sharpening worries about the safety of key shipping lanes.

Sentiment was also weighed down by doubts about a broader peace deal between Washington and Tehran. Iran's leading security official said Hormuz would remain closed until Washington agreed to Tehran's demands. Pakistan's Defence Minister Khawaja Asif had earlier signalled on Tuesday that the two sides were drawing closer to some arrangement, a development that raised hopes of reopening the waterway.

The American Petroleum Institute reportedly recorded a bigger-than-expected rise in US crude stocks, which could ease supply worries if official figures confirm it. Investors are also weighing the July consumer price data, due on Wednesday, plus producer figures scheduled for Thursday. Those readings could shape expectations for Federal Reserve rate policy, following weaker jobs data that stirred doubts about the American economic outlook.