(LONDON, UK) – Oil prices rose slightly on Wednesday, 12 August, amid doubts over a peace deal between the United States and Iran and attacks on two vessels. The developments strengthened concerns about supply disruptions in the Middle East, even as US crude oil inventories increased.
Brent crude futures rose by 72 cents, or 0.81 percent, to $89.63 per barrel. That is equal to £70.47 per barrel at current exchange rates. US West Texas Intermediate crude rose by 71 cents, or 0.85 percent, to $83.91 per barrel, equal to £65.97.
The United States and Iran linked Houthi forces in Yemen reported separate attacks on vessels in the Strait of Hormuz and the Bab el Mandeb Strait on Tuesday.
On Monday, six vessels passed through the Strait of Hormuz. Over the last 10 days, the average had been 11 vessels per day. Before the war between the US and Iran, traffic through the waterway averaged between 125 and 140 ships per day.
Iran’s new Secretary of the Supreme National Security Council, Mohsen Rezai, said on Tuesday that the vital shipping route through the Strait of Hormuz would remain closed unless the US accepts Iran’s conditions for ending the war. Those conditions include unfreezing Iranian assets and ending other conflicts in the region.
According to data from the American Petroleum Institute, US crude oil inventories rose by about 9.1 million barrels in the week ending 7 August.
Oil prices had stabilised on 11 August at a more than one week high. That came as hopes faded for a US Iran deal to end the war and as shipping in the Strait of Hormuz resumed.