Oil prices rise after ship attacks, US-Iran talks deadlock

Business Recorder reported that oil prices rose on Wednesday in volatile trading, after attacks on two ships deepened worries about supply disruptions in the Middle East and negotiations aimed at ending the Iran conflict reached a standstill. Brent futures were 17 cents higher at $89.08 a barrel by 1055 GMT, on course for a sixth straight day of gains. U.S. WTI crude added 20 cents to $83.40, set for a fifth consecutive daily rise.

Both contracts had climbed more than $1 earlier, then slipped briefly as traders turned to U.S. crude inventory figures, which industry sources suggested might have grown. Prices regained ground after a senior Iranian source told Reuters that Tehran and Washington were not discussing an extension of their ceasefire, because the agreement never had a start date.

On Tuesday, the United States and Yemen's Houthis separately reported attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait, two routes that carry oil and gas out of the region. Hormuz traffic dropped to just eight vessels on Tuesday, the lowest in a week, against 125 to 140 daily before the war. American Petroleum Institute data, cited by market sources, showed crude stocks up about 9.1 million barrels while gasoline and distillates fell. Haitong Futures said that, if the EIA report confirms the build, it could ease concerns about supply tightness.