Oil Prices Edge Higher, Brent Crude Tops $110 Per Barrel

Oil Prices Edge Higher, Brent Crude Tops $110 Per Barrel

Oil prices edged higher on Wednesday after statements reinforced expectations that Iran would not back down from its conditions for reopening the Strait of Hormuz.

International benchmark Brent crude futures for December delivery rose 1.5% to $110.46 a barrel, up from the previous close of $108.79.

US benchmark West Texas Intermediate (WTI) crude futures for December delivery gained 1.5% to $99.31 a barrel, up from $97.82 at the previous close.

Brent crude fell to $105.95 a barrel on Tuesday after reports of diplomatic efforts between the US and Iran and proposals for a compromise reportedly submitted to the parties by Qatar and Pakistan, then resumed its upward trend after remarks by Iranian Parliament Speaker Mohammad Bagher Ghalibaf.

Ghalibaf said Tehran would not trust Washington unless the US met Iran’s conditions for reopening the Strait of Hormuz, increasing uncertainty over oil shipments through the waterway and raising global supply concerns that supported prices.

Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, also said enriched nuclear material would not be taken out of Iran under any circumstances.

The statements reinforced expectations that the US and Iran would not resolve their disagreements in the short term, putting upward pressure on oil prices.

Meanwhile, the naval forces of Iran’s Islamic Revolutionary Guard Corps said a “super tanker” had struck a sea mine south of the Strait of Hormuz, triggering an explosion.

In a written statement, the IRGC said a vessel known as a “super tanker” had attempted to transit the Strait of Hormuz.

The statement said the tanker switched off its radar and navigation systems, ignored warnings, and tried to use an “unauthorised” route south of the strait.

The incident heightened concerns that shipping through the waterway, critical to global oil trade, could face further disruption, supporting the price rise.

Separately, the American Petroleum Institute (API) estimated that US commercial crude inventories fell by about 4.93 million barrels last week, versus market expectations of a 1.3 million-barrel decline.

The larger-than-expected drop added upward pressure on oil prices. The Energy Information Administration (EIA) will release official US oil inventory data later on Wednesday.

Oil Rises as Iran-Backed Houthis, Saudi Arabia Tensions Escalate