Oil prices rose on Wednesday, recovering from the previous session’s two-month lows as traders weighed hopes of de-escalation in the U.S.-Israeli war on Iran against continued threats to shipping through the Strait of Hormuz.
As of 5:05 GMT, Brent crude futures climbed 91 cents, or 0.99 percent, to $92.4 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 55 cents, or 0.64 percent, to $86.59 a barrel.
The rebound came after prices fell sharply on Tuesday, initially losing more than $3 a barrel after U.S. officials played down the prospect of further military strikes against Iran. However, oil prices recovered some ground after an Iranian security official said no negotiations were taking place between Tehran and Washington.
The contrasting signals have kept oil markets highly sensitive to developments in the conflict, with investors struggling to assess whether diplomatic efforts could ease tensions or whether further escalation could threaten regional energy supplies.
Strait of Hormuz attacks keep supply concerns in focus
Despite hopes of de-escalation, attacks on commercial shipping have continued, limiting the downward pressure on oil prices. Data showed little indication of a reduction in attacks in November, following 37 incidents involving ships in October, the highest monthly total since the outbreak of the Middle East war, according to the Washington Institute for Near East Policy.
On Tuesday, the United Kingdom Maritime Trade Operations (UKMTO) agency reported that a tanker had been struck northeast of Lima in Oman.
Separately, Iran’s Revolutionary Guards Navy said two tankers caught fire after hitting naval mines while traveling along what it described as an unauthorized route through the Strait of Hormuz.
The continued incidents underscore the risks facing one of the world’s most important energy shipping corridors. Any prolonged disruption to tanker movements through the strait could tighten global oil supplies, increase transportation costs and add further volatility to prices.
Russian oil infrastructure faces further pressure
Supply concerns also extended beyond the Middle East after a drone attack caused a fire in the port area of Ust-Luga on Russia’s Baltic Sea coast, injuring three workers, a regional governor said on Wednesday.
The incident adds to mounting pressure on Russia’s energy infrastructure. Industry sources said on Tuesday that renewed Ukrainian drone attacks had reduced the country’s oil refining capacity by around 30 percent since late October.
Meanwhile, Russian and Ukrainian officials met in Abu Dhabi on Tuesday for their first peace talks since February, as U.S. President Donald Trump’s envoys launched a renewed effort to end the war.
Progress towards a settlement could eventually ease some of the geopolitical risks surrounding Russian energy supplies. However, the latest attacks highlight the continued vulnerability of the country’s oil infrastructure.
U.S. crude inventories rise
On the demand and inventory front, U.S. crude oil stocks increased by 9 million barrels in the week ended November 6, according to data from the American Petroleum Institute (API).
The increase could weigh on oil prices by pointing to greater domestic supply availability, although the broader market remains heavily influenced by geopolitical developments.
The latest inventory figures offer a counterweight to concerns over supply disruptions in the Middle East and Russia. However, with shipping risks in the Strait of Hormuz unresolved, geopolitical developments are likely to remain a major driver of oil price movements in the near term.
Source: Economymiddleeast