Oil prices increased on Wednesday, with Brent crude futures rising approximately 1.24% to $90 per barrel and U.S. West Texas Intermediate crude futures climbing 1.3% to $84.3 per barrel. This surge follows deadly attacks by Iran-backed Houthi rebels on a cargo ship in the Bab el-Mandeb Strait, resulting in six fatalities, marking the first such casualties in over a year.
Concurrently, U.S. forces engaged a container ship allegedly attempting to breach a blockade on Iranian ports in the Gulf of Oman. These incidents highlight the escalating impact of the ongoing conflict on critical shipping routes, despite diplomatic efforts indicating potential progress toward reopening the Strait of Hormuz.
José Torres, a Senior Economist at Interactive Brokers, noted that while there are signs of a possible agreement between the U.S. and Iran, market participants remain cautious, awaiting tangible developments before making significant investment decisions. He emphasized that the slight uptick in oil prices suggests that supply concerns related to the conflict are still very much present