(LONDON, UK) – Oil prices rose on Wednesday, 12 August, as doubts grew over a peace agreement between the United States and Iran. Attacks on two vessels added to fears of supply disruption in the Middle East, even as crude oil stocks in the US increased.
Brent crude futures gained 72 cents, or 0.81 percent, to reach $89.63 per barrel. That is equivalent to approximately £70.50 and €82.10. US West Texas Intermediate (WTI) crude rose 71 cents, or 0.85 percent, to $83.91 per barrel, roughly £66.00 and €76.85.
The upward move came despite a reported rise in US crude inventories. Figures from the American Petroleum Institute indicated that crude stocks in the United States climbed by roughly 9.1 million barrels in the week ending 7 August.
Supply worries held the market’s focus following separate reports of vessel attacks on Tuesday. The United States and Yemen’s Houthis, who are aligned with Iran, each reported incidents targeting ships in the Strait of Hormuz and the Bab el Mandeb strait. These waterways are vital corridors for global oil shipments.
Data on shipping movements through the Strait of Hormuz underlined the disruption. On Monday, six vessels made the transit. That compares with an average of 11 per day over the previous ten days. Before the conflict between the US and Iran, the daily average stood between 125 and 140 ships.
The new secretary of Iran’s Supreme National Security Council, Mohsen Rezaei, stated on Tuesday that the crucial Hormuz shipping lane would remain closed unless the United States accepted Iran’s conditions for ending the war. His demands included the unfreezing of Iranian assets and a halt to other regional conflicts.
The price gains partly reversed a recent easing of tensions. On 11 August, oil prices had steadied at a more than one week high amid fading optimism that the US and Iran would reach a deal to halt hostilities and allow normal shipping to resume through the Strait of Hormuz.