Oil rises, fresh shipping attacks weaken US-Iran peace hopes

August 12, 2026 (MLN): Oil prices climbed on Wednesday as fresh attacks on shipping in the Middle East heightened concerns over supply disruptions, while uncertainty surrounding a potential US-Iran agreement kept the Strait of Hormuz effectively closed.

Currently, Brent crude futures is up, 1.63%, at $89.67 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is up by $1.30, or 1.57%, to $83.98 per barrel by [9:50 am] PST.

The latest gains came after reports of separate attacks on vessels in the Strait of Hormuz and the Bab el-Mandeb Strait, raising fresh concerns about the safety of key shipping routes and the flow of energy supplies, according to Reuters.

Market sentiment was also pressured by growing doubts over a broader peace agreement between Washington and Tehran.

Iran's top security official reiterated that the Strait of Hormuz would remain closed unless the United States accepted Tehran's conditions, adding to concerns over prolonged disruptions to oil shipments.

The developments overshadowed positive signals from Pakistan on Tuesday.

Pakistani Defense Minister Khawaja Asif had indicated that the United States and Iran were moving closer to some form of arrangement, raising hopes that diplomatic progress could eventually lead to the reopening of the strategic waterway.

Such optimism had the potential to ease oil prices by reducing fears of a prolonged supply disruption, according to media reports.

However, the fresh shipping incidents and uncertainty over negotiations shifted market attention back to supply risks on Wednesday.

The oil market is also monitoring US crude inventories after American Petroleum Institute data reportedly showed a larger-than-expected increase in stocks.

The inventory build could provide some relief to supply concerns if confirmed by official data.

Investors are also awaiting US inflation data, with the July consumer price report due Wednesday and producer price figures scheduled for Thursday.

The readings could influence expectations for the Federal Reserve's interest-rate path, particularly after a weaker jobs report raised concerns about the US economic outlook.

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