Oil Prices Rise as Attacks on Shipping in Strait of Hormuz Continue
Oil prices climbed after falling to a two-month low, with renewed attacks on shipping in the Strait of Hormuz countering hopes of de-escalation in the Iran war. Brent rose to $92.20 a barrel and U.S. West Texas Intermediate reached $86.53 in Wednesday trading.
The crude oil price rose on Wednesday as continuing attacks on shipping in the Strait of Hormuz countered hopes of de-escalation in the Iran war. Brent futures gained 71 cents, or 0.78%, to $92.20 a barrel by 0119 GMT, while U.S. West Texas Intermediate crude added 49 cents, or 0.57%, to $86.53.
The gains followed a drop to two-month lows in the previous session. Oil prices had initially fallen by more than $3 a barrel after U.S. officials played down the need for further military strikes against Iran, then recovered some losses after an Iranian security official said no talks were taking place.
Shipping risks remain in focus. Data from the Washington Institute for Near East Policy showed 37 ships were attacked in the Strait of Hormuz and nearby waterways in October, the highest monthly total since the war began. Ten attacks have been recorded so far in November.
Three tankers were hit on Sunday for using what Iran's state broadcaster called “unauthorised routes” through the strait. Social media videos verified showed the Navig8 tanker on fire near Oman’s coast.
The United Kingdom Maritime Trade Operations agency said another tanker was struck northeast of Oman's Lima on Tuesday. Iran's Revolutionary Guards Navy separately said two tankers caught fire after hitting naval mines on what it described as the “unauthorized route.”
LSEG analysts said a possible agreement would not necessarily restore shipping flows quickly. “Even in the event a deal is struck, an increase in flows through the waterway would still depend on mine clearance, insurance costs and whether or not shipowners would even be willing to take the risk,” they said in a November 10 note. “Meanwhile, attacks have not slowed.”
U.S. crude inventories also rose, adding another market factor. Crude stocks increased by 9 million barrels in the week ended November 6, market sources said, citing American Petroleum Institute data.
In Russia, oil refining capacity has fallen by about 30% since late October after renewed Ukrainian drone attacks, industry sources said.
Russian and Ukrainian officials met in Abu Dhabi on Tuesday for their first peace talks since February, as envoys of U.S. President Donald Trump began a new effort to end the war.
