Global oil prices recovered on Wednesday after falling to their lowest levels in two months during the previous session, as renewed attacks on commercial shipping in the Strait of Hormuz raised concerns about energy supplies and weakened hopes for a diplomatic breakthrough between the United States and Iran.
Brent crude futures rose 1.1% to $92.53 per barrel, while US West Texas Intermediate (WTI) crude gained 0.8% to $86.71, reflecting renewed concerns over security in one of the world’s most important oil transit routes.
Attacks on Ships Raise Supply Concerns
The latest price increase came amid reports of continued attacks on vessels in and around the Strait of Hormuz.
According to data from the Washington Institute for Near East Policy, 37 ships were attacked in October, marking the highest monthly total since the Middle East conflict began. The incidents have continued into November, adding to uncertainty among energy traders and shipping companies.
The United Kingdom Maritime Trade Operations (UKMTO) agency reported that a tanker was struck northeast of Lima, Oman, on Tuesday.
Separately, Iran’s Revolutionary Guards Navy said two tankers caught fire after hitting naval mines while travelling through what it described as an unauthorised route in the strait.
These developments have raised questions about whether commercial vessels can safely resume normal operations even if Washington and Tehran reach an agreement to reduce tensions.
Diplomatic Uncertainty Keeps Oil Markets Volatile
Oil prices had initially dropped by more than $3 per barrel during the previous session after US officials played down the likelihood of further military strikes against Iran.
However, some of those losses were recovered after an Iranian security official said that no negotiations were taking place between the two countries.
The contrasting statements have left markets uncertain about the prospects for a diplomatic settlement. Traders are closely monitoring whether Iran will respond to US demands and whether the two sides can reach an agreement that reduces the risk of further escalation.
Analysts at LSEG Oil Research have warned that even if a deal is reached, restoring shipping through the Strait of Hormuz would not happen immediately. Mine clearance, higher insurance costs and shipowners’ willingness to accept security risks could all affect the recovery of oil shipments.
Oil Prices Fall for Fourth Consecutive Day Amid Hopes of Reduced Iran War Tensions
US Crude Inventories Increase
Adding another factor to the market outlook, US crude oil inventories increased by 9 million barrels during the week ending November 6, according to market sources citing data from the American Petroleum Institute.
The increase in inventories could put downward pressure on prices by indicating stronger supply availability, although concerns over Middle East shipping routes continue to support the market.
Meanwhile, Ukrainian drone attacks have reportedly reduced Russia’s oil refining capacity by approximately 30% since late October, according to industry sources.
Russia and Ukraine Hold Fresh Peace Talks
Developments in the Russia-Ukraine conflict have also attracted attention in energy markets.
Russian and Ukrainian officials met in Abu Dhabi on Tuesday for their first peace talks since February, as representatives of US President Donald Trump launched a renewed diplomatic effort to end the war.
With geopolitical tensions affecting major energy-producing regions, oil markets remain sensitive to developments in the Middle East, disruptions to shipping and changes in global crude supplies.
The latest rebound highlights how quickly oil prices can respond to security incidents and diplomatic signals, particularly when the Strait of Hormuz remains a major concern for international energy trade.
Source: Reuters, The Express Tribune
