Oil prices rose on Wednesday as attacks on two ships heightened fears of supply disruptions across key Middle East shipping routes, while a sharp increase in US crude inventories limited some of the gains.
Brent crude futures rose 90 cents, or one per cent, to $89.81 a barrel by 7:57am GMT, putting the benchmark on course for a sixth consecutive day of gains. US West Texas Intermediate crude also gained 88 cents, or 1.1 per cent, to $84.08 a barrel, extending its winning streak to five days.
The gains came after the United States and Iran-aligned Houthi forces reported separate attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait on Tuesday.
Both waterways are critical routes for the movement of oil and gas from the Middle East, with the Suez Canal also serving as a major artery for global trade.
Iran’s top security official said the Strait of Hormuz would remain closed unless the United States accepted Tehran’s conditions for ending the war, including the release of frozen Iranian assets.
Shipping data showed that only eight vessels passed through Hormuz on Tuesday, the lowest level recorded in a week. Before the war, between 125 and 140 vessels typically transited the strategic waterway each day.
The disruption has raised concerns about the availability of crude supplies and the potential impact on global energy markets.
However, a sharp rise in US crude inventories could ease some of the pressure on prices.
Market sources citing American Petroleum Institute data said US crude stocks increased by about 9.1 million barrels last week, while gasoline inventories fell by 1.5 million barrels and distillate stocks declined by 596,000 barrels.
The increase in crude stocks was significantly higher than analysts had expected. If confirmed by the US Energy Information Administration, the build-up could reduce concerns over a tightening global oil market.
The EIA was expected to release its official inventory figures later on Wednesday.
Meanwhile, the US Energy Information Administration expects significant disruptions to Middle East crude supplies to persist through the end of 2027.
The agency projects that Brent crude will average $86.81 a barrel in 2026, while West Texas Intermediate is expected to average $80.88.
The latest price gains come as the Middle East conflict continues to threaten major energy supply routes, with traders closely watching developments around the Strait of Hormuz and other strategic waterways.
