- Markets remained focused on stalled diplomatic talks between Iran and the US.
- Little progress was reported in negotiations to end the conflict.
- Concerns continued over Hormuz and potential supply disruptions.
Oil prices rose more than 1% in early trade on Wednesday as hostilities in the Middle East flared again with Iran firing missiles at Kuwait and Bahrain, while diplomatic talks between Iran and the United States showed little progress.
Brent futures rose $1.05, or 1.09%, to $97.05 a barrel.
Both benchmarks fell to one-week highs in the previous session.
Iran fired ballistic missiles at regional neighbors Kuwait and Bahrain but failed to hit targets, the US military said, adding that the US. forces carried out strikes on Iran’s Qeshm Island in response to attempted attacks.
The market awaited news on the Iran war, with Tehran reviewing a proposed deal with the US to end the conflict.
Iran has not communicated with Washington for a few days, Iranian media reported Tuesday, although Trump said talks had been going on continuously.
ANZ bank senior commodities strategist Daniel Hynes said any effort to reopen the Strait of Hormuz faces challenges as Iran has mined large parts of the vital waterway.
“There has been a small increase in vessels attempting to travel, but overall transits remain significantly below pre-conflict levels,” Hynes said.
More than three months after the US and Israel launched strikes against Iran, the conflict is deadlocked with a shaky ceasefire.
On the supply side, U.S. crude oil inventories fell for a seventh straight week last week, according to market sources citing American Petroleum Institute data released on Tuesday.
Crude stockpiles fell by 6.8 million barrels in the week ended May 29, the sources said.
US government data on inventories is expected at 10:30 a.m. ET (1430 GMT) Wednesday.
