Oil prices rose on Wednesday as deadly attacks on vessels in the Red Sea and Gulf of Oman heightened concerns over the security of major global shipping routes.
Brent crude futures, the international benchmark, gained about 0.88% to $89.69 per barrel as of 2:13 a.m. ET, while US West Texas Intermediate (WTI) crude futures advanced 0.91% to $83.96 per barrel.
The gains came after Iran-backed Houthi rebels killed six people in an attack on a cargo ship in the Bab el-Mandeb Strait on Tuesday, marking the first reported fatalities from attacks on Red Sea shipping in more than a year.
Hours later, US forces said they fired missiles at a container ship that allegedly attempted to breach Washington’s blockade of Iranian ports in the Gulf of Oman.
The incidents have underscored the growing impact of the nearly six-month-old conflict on two strategically important global shipping routes, raising concerns over potential disruptions to energy supplies and international trade.
The developments come even as diplomatic efforts aimed at reopening the Strait of Hormuz appear to be making progress.
Pakistan has expressed optimism that Washington and Tehran could reach an agreement over the reopening of the strategic waterway.
However, Interactive Brokers Senior Economist José Torres said concerns over Middle East oil supplies remained elevated despite indications that the US and Iran could be moving closer to an agreement.
Torres said markets were still awaiting concrete evidence of progress, noting that investors had been expecting a deal for several weeks.
“Investors have been awaiting a deal for a few weeks, and tangible progress is likely required for yields to fall significantly and stocks to rally further at this juncture,” he said in a note late Tuesday.
He also pointed to the rise in oil prices as an indication that concerns over supply disruptions linked to the conflict had yet to ease.
The Strait of Hormuz remains a critical artery for global energy supplies, with any prolonged disruption capable of affecting crude oil flows and putting further upward pressure on international energy prices.
Boluwatife Enome
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