Oil prices rose approximately 1% on Wednesday, November 11, recovering from their lowest levels in nearly two months as renewed tensions between Washington and Tehran reduced expectations of an imminent diplomatic agreement.
US West Texas Intermediate (WTI) crude advanced to around $87 a barrel, while international benchmark Brent climbed above $92, according to Reuters.
The recovery followed a sharp decline in the previous session, when comments from US officials suggesting that further military strikes against Iran might be unnecessary had raised hopes of an easing conflict.
Iran’s Nuclear Position Complicates Negotiations
Iran’s security chief said Tehran would not allow enriched nuclear material to leave the country, underscoring a major disagreement with Washington.
The United States has insisted that nuclear issues must be addressed during initial negotiations aimed at ending the conflict.
Despite diplomatic efforts, an Iranian security official denied that talks between the two countries were underway.
The conflicting statements have contributed to uncertainty over whether negotiations could produce an agreement.
Strait of Hormuz Shipping Attacks Continue
Security risks in the Strait of Hormuz, one of the world’s most important maritime routes for oil transportation, continued to support crude prices.
According to data from the Washington Institute for Near East Policy, 37 vessels were attacked in October, the highest monthly total since the conflict began.
A tanker was also reportedly struck off the coast of Oman, while Iran’s Revolutionary Guards said two additional tankers caught fire after encountering naval mines.
The incidents have raised concerns about shipping safety, insurance costs and the movement of energy supplies through the Persian Gulf.
Even if a diplomatic agreement is reached, restoring normal maritime traffic could depend on mine clearance and shipping companies’ willingness to resume operations.
US Crude Inventories Rise by 9 Million Barrels
On the supply side, preliminary data from the American Petroleum Institute showed that US crude oil inventories increased by approximately 9 million barrels during the week ended November 6.
The increase contrasted with expectations for a decline in inventories and added pressure to oil prices.
Official inventory figures from the US Energy Information Administration were scheduled for release later Wednesday.
The latest market movements reflected competing pressures from geopolitical risks in the Middle East and rising US crude inventories.
