Oil Prices Rise Amid Growing Concerns Over Middle East Supply

Oil prices rose on Wednesday amid growing concerns over supply disruptions from the Middle East. Traders showed caution due to risks affecting shipping through the Red Sea and ongoing threats to the region's oil infrastructure. Brent crude futures increased by $1.21 to reach $110 per barrel, while U.S. West Texas Intermediate crude rose by over $1 to $99 per barrel. Reports from Iran indicated that a large oil tanker caught fire after hitting a naval mine south of the Strait of Hormuz, following a breach of Iranian maritime regulations. Data from ship-tracking company Kpler revealed at least 18 attacks on vessels over the past two weeks. Analysts from the London Exchanges Group noted that attacks on oil tankers have extended beyond the Strait of Hormuz to southern Gulf of Oman, with Iran targeting ships and threatening loading and maritime transport operations in the area, impacting oil flow from the Middle East. In the United States, two Energy Department officials stated that efforts are underway with refining companies worldwide to boost fuel production after diesel shortages caused price increases. U.S. Energy Information Administration data showed declines in crude oil, distillate, and gasoline inventories last week, with crude stocks down by 4.9 million barrels, gasoline stocks falling by about 2 million barrels, and distillate inventories decreasing by approximately 2.6 million barrels compared to the previous week.