Oil Prices Rebound, Brent Tops $92 amid Tanker Attacks
Oil prices rebounded on Wednesday amid continued attacks on oil tankers in the Strait of Hormuz and growing concerns about supply disruptions in the region.
International benchmark Brent crude futures for January delivery rose about 0.64% to $92.08 a barrel, up from the previous close of $91.49.
US benchmark West Texas Intermediate (WTI) crude futures for December delivery increased 0.04% to $86.25 a barrel, up from $86.21 at the previous close.
The United Kingdom Maritime Trade Operations (UKMTO) said Wednesday it had received a report of an incident involving a tanker in the Strait of Hormuz. In a warning, the agency said the report came from military authorities but did not provide further details.
UKMTO said the crew’s status, the extent of any damage, and the environmental impact were unknown at the time of the report. No information was available about the tanker’s cargo, destination, name, or the flag it was flying.
The agency advised vessels transiting the Strait of Hormuz to exercise caution and report any suspicious activity as authorities investigate.
On Tuesday, Iran’s Islamic Revolutionary Guard Corps (IRGC) said that an oil tanker had struck a naval mine and exploded after using a route in the Strait of Hormuz that Tehran had not authorised.
The incident comes amid heightened maritime tensions in the strait following the US-Israeli offensive against Iran on Feb. 28. Iranian authorities have repeatedly warned commercial vessels against using shipping routes outside those Tehran designates.
Despite diplomatic efforts and a memorandum signed by Washington and Tehran in June, disputes about navigation and maritime security in the strategic waterway have persisted.
Growing concerns over tanker safety in the region supported oil prices amid fears of further disruptions to oil shipments.
However, statements suggesting a possible end to the US-Iran conflict, along with ongoing diplomatic efforts, limited further gains in oil prices.
US President Donald Trump said the war with Iran is nearing an end, expressing optimism that the conflict could be resolved soon.
Meanwhile, according to a report by Israeli newspaper The Jerusalem Post, citing diplomatic sources, Qatar has secured at least two weeks to continue diplomatic efforts aimed at reaching an agreement between Washington and Tehran.
Qatari Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani discussed ongoing negotiations between the US and Iran at the sidelines of the G7 Foreign Ministers’ Meeting in Paris.
Al Thani reportedly emphasised that significant differences remain between Washington and Tehran, with several key issues blocking a potential agreement.
According to the report, the timeline for implementing a possible agreement remains a key point of contention between the two sides.
Despite ongoing diplomatic efforts, unresolved differences between Washington and Tehran continue to fuel uncertainty over regional oil supplies.
Hopes of easing tensions between the US and Iran weighed on oil prices in earlier sessions. Brent crude fell more than 5% on Monday before briefly dropping below $90 per barrel on Tuesday.
