Oil prices rose on Wednesday while global stocks fell as renewed attacks in the Strait of Hormuz raised concerns about disruptions to Middle East oil supplies.
Brent crude rose 0.7 per cent to $101.23 per barrel, while West Texas Intermediate gained 0.5 per cent to $89.88 per barrel around 0810 GMT.
The rise came after reports indicated that Iran had increased attacks on tankers passing through the strategic waterway.
The UK Maritime Trade Operations said nine attacks had been recorded so far in October, representing half of the total reported in the Strait of Hormuz and the Gulf throughout September.
The development reversed some of the recent decline in oil prices, which had been supported by reports that Middle East exports, excluding Iran, were recovering towards pre-war levels.
Brent had earlier fallen below $100 per barrel, while WTI dropped below $90, easing concerns about inflation and giving central banks more room to delay further interest rate increases.
However, renewed attacks on vessels have increased uncertainty over the security of oil shipments through the Strait of Hormuz, one of the world’s key energy routes.
Chris Weston of Pepperstone said the market remained highly sensitive to geopolitical developments and reports about attacks on vessels.
The renewed tensions also weighed on stock markets, with major Asian and European indexes falling.
Tokyo’s Nikkei 225 dropped 0.9 per cent, while Hong Kong’s Hang Seng Index fell 0.6 per cent. London, Paris and Frankfurt markets also opened lower.
The declines came despite another record session on Wall Street, where the Nasdaq and S&P 500 gained as investors returned to technology and artificial intelligence stocks.
Nvidia’s market value rose to almost $5.7 trillion, further boosting the US technology sector.
Meanwhile, Yemen’s Houthis claimed an attack on Riyadh’s main airport, while Yemen’s military said it had pushed the Iran-backed group from areas around the Bab al-Mandeb Strait and the port city of Mocha.
The latest developments have heightened concerns over global oil supplies as officials warn that stockpiles are declining and governments may have less capacity to absorb prolonged disruptions.
