- Markets remained focused on the impasse in diplomatic negotiations between Iran and the United States.
- Little progress has been reported in negotiations aimed at ending the conflict.
- Concerns persisted over Hormuz and a possible supply disruption.
Oil prices rose more than 1% in early trading Wednesday as hostilities in the Middle East resumed with Iran’s missile strikes on Kuwait and Bahrain, while diplomatic negotiations between Iran and the United States showed little progress.
Brent futures rose $1.05, or 1.09%, to $97.05 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.01, or 1.08%, to $94.77.
Both benchmarks settled at their one-week highs in the previous session.
Iran launched ballistic missiles toward its regional neighbors Kuwait and Bahrain but failed to hit its targets, the U.S. military said, adding that U.S. The armed forces carried out strikes on the Iranian island of Qeshm in response to attempted attacks.
The market was awaiting news on the war in Iran, with Tehran reviewing a proposed deal with the United States to end the conflict.
Iran has not communicated with Washington for several days, Iranian media reported Tuesday, although Trump said negotiations were continuing continuously.
Daniel Hynes, ANZ Bank’s senior commodities strategist, said any “efforts” to reopen the Strait of Hormuz face challenges as Iran has exploited large parts of the vital waterway.
“There has been a slight increase in the number of ships attempting the journey, but the total number of transits remains significantly below pre-conflict levels,” Hynes said.
More than three months after the launch of American and Israeli strikes against Iran, the conflict is stuck in a stalemate, with a fragile ceasefire.
On the supply side, U.S. crude oil inventories fell for a seventh straight week last week, according to market sources citing American Petroleum Institute data released Tuesday.
Crude inventories fell by 6.8 million barrels in the week ended May 29, the sources said.
U.S. government inventory data is due Wednesday at 10:30 a.m. ET (2:30 p.m. GMT).
