Oil prices rose by more than $2 a barrel on Wednesday as tensions between Iran and the United States deepened. Prices also received support from a fall in US crude oil and fuel inventories.
However, prices later fell after discussions about possible mediation efforts between Iran and the United States during a meeting between Iran’s president and Pakistan’s army chief in Tehran, Reuters reported. US West Texas Intermediate (WTI) crude also recorded strong gains. Oil prices had reached multi-month highs during the previous session. Brent crude touched its highest level in five months, while WTI crude reached a six-month peak.
WTI futures climbed by $2.13, or 2.2%, to $99.95 a barrel at the same time, according to Reuters.
They were referring to the conflicts in the Middle East and the Russia-Ukraine war, Reuters reported. Iran signalled that there was little reason to expect progress in talks with the US. Iranian President Masoud Pezeshkian also criticised US actions against the country. The lack of progress in diplomatic efforts has added to concerns about oil supplies. Attacks on ships have raised further concerns about oil shipments. Iran was reportedly targeting tankers beyond the Strait of Hormuz . LSEG analysts warned that the attacks were reaching into the Gulf of Oman, increasing risks to oil shipments in the region. Iran-aligned Houthi forces claimed responsibility for attacks on Saudi targets. The US is also working to increase fuel production.
At least 18 attacks on vessels were recorded over the previous two weeks, according to data from Kpler.
Iranian Foreign Minister Abbas Araqchi told the Financial Times that Iran was fully prepared to defend itself. He told Iranian state media that the US could not expect Iran to engage in dialogue while continuing to blockade and threaten it. PVM analysts said neither of the two major geopolitical conflicts supporting the rise in oil prices had shown signs of easing.
On Monday, the group said it had attacked a Saudi Aramco site in Yanbu, the Shaybah oilfield and the airports in Riyadh and Abha, Reuters reported. Two US Department of Energy officials said on Tuesday that they were working with refiners around the world to boost fuel output, Reuters reported.
