Oil prices rose as concerns over supply were compounded by a decline in U.S. inventories
According to Iranian media, Iran informed the Chairman of the Joint Chiefs of Staff of Pakistan that no talks would be held with Washington until its demands are met. Oil prices climbed by more than $1 on Wednesday, driven by escalating tensions in the Middle East, which fueled fears of supply disruptions, and a drop in U.S. crude oil and product inventories that provided market support.
Data from the American Petroleum Institute (API) showed that U.S. crude oil inventories fell by 4.9 million barrels for the week ending October 16.
As of 06:30 GMT, Brent crude futures rose by $1.61 (1.5%) to $110.40 per barrel, while WTI crude gained $1.45 (1.5%) to reach $99.27 per barrel.
Prices had fallen in the previous session following a meeting in Tehran between the Iranian President and the Chairman of the Joint Chiefs of Staff of Pakistan regarding mediation efforts; prior to that decline, however, Brent crude had reached a five-month high.
Nevertheless, the prospect of reaching an agreement remains distant, and the latest data from the American Petroleum Institute (API), indicating a continued decline in both U.S. crude oil and product inventories, have further complicated the volatile price trend.
Meanwhile, risks to maritime security are also mounting, with at least 18 attacks on vessels recorded over the past two weeks. Iran is targeting tankers in an area extending well beyond the Strait of Hormuz, reaching into the Gulf of Oman. This jeopardizes crude oil shipments in the Gulf region, as well as the ship-to-ship transfer operations that support these shipments.
The Houthis have claimed responsibility for attacks carried out in Saudi Arabia on Monday.
The death toll from an attack launched by the Houthis against Yemeni government forces on Monday has risen to 73, amid an intensification of the conflict.
In a television interview aired on Tuesday, Iranian Foreign Minister Abbas Araghchi stated that Iran has received no response, neither from Saudi Arabia nor from the Houthis in Yemen, to its offer to mediate peace talks.
Meanwhile, in the United States, two Department of Energy officials announced on Tuesday that they are working with refineries worldwide to boost fuel production, following a shortage of diesel fuel that has driven up prices.
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