Brent climbs near $110 as tanker attacks and Iran tensions persist
Oil rose on shipping risks in the Strait of Hormuz and attacks on Saudi facilities, while the U.S. called a peace deal difficult.
Brent crude futures rose to about $109.70 a barrel early Wednesday, up roughly 0.8%, and U.S. West Texas Intermediate gained about 0.8% to $98.58. Brent settled Tuesday at $108.79 after touching a five-month high of $111.99. Iran's Revolutionary Guards said mines set two tankers ablaze at an unauthorized crossing in the southern Strait of Hormuz, and a shiptracker counted at least 18 vessel attacks in two weeks.
Yemen's Houthis claimed strikes on Saudi Aramco sites and Saudi airports on Monday. Goldman Sachs said average crude freight rates have surged above $20 a barrel from $3 a year ago, which could squeeze refiners and lift fuel prices. U.S. Secretary of State Marco Rubio reportedly said a peace deal with Iran remains difficult, while Iran's foreign minister reportedly said the Strait will stay closed until Washington accepts Tehran's conditions (reported, not independently confirmed).
Tuesday's swings followed reports of a possible diplomatic breakthrough that a diplomat then disputed. Read our 3:45 PM story and the Chain, Crude & Chips sidebar for the background.
