Oil Prices Rise Again Amid Fears of Hormuz Attacks

International oil prices rose on Wednesday amid hopes of easing tensions in the Iran war and continued concerns over attacks on shipping in the Strait of Hormuz.

Oil prices had fallen to their lowest level in two months on Tuesday.

At 1:19am GMT on Wednesday, Brent crude rose by 71 cents, or 0.78%, to $92.20 per barrel. US West Texas Intermediate (WTI) crude increased by 49 cents, or 0.57%, to $86.53 per barrel.

According to new data, 37 vessels were attacked in the Strait of Hormuz and surrounding waterways in October.

This was the highest monthly number of attacks on ships since the Iran war began. Data from the Washington Institute for Near East Policy showed that 10 attacks had been recorded so far in November.

Several videos circulated on social media on Sunday showed a fire aboard an oil tanker operated by Navig8 near the coast of Oman. The footage was reviewed and verified by Reuters.

Iran's state broadcaster reported that three tankers had been attacked in the Strait of Hormuz on Sunday for allegedly using unauthorised routes. One of the vessels was operated by Navig8.

The United Kingdom Maritime Trade Operations (UKMTO) said on Tuesday that another tanker had been attacked northeast of Lima, Oman.

Meanwhile, the naval force of Iran's Islamic Revolutionary Guard Corps said in a statement on Tuesday that two tankers had caught fire after striking sea mines or explosive objects while travelling through what it described as unauthorised routes in the Strait of Hormuz.

Analysts at the London Stock Exchange Group (LSEG) said in a report dated November 10 that even if an agreement were reached, the normal flow of shipping through the Strait of Hormuz would depend on several factors.

These include the removal of sea mines, insurance costs and shipowners' willingness to operate vessels despite the risks.

The analysts also noted that attacks on vessels in the strait had not declined.

Oil prices had fallen by more than $3 per barrel early in Tuesday's trading session after US officials said there was no need for further military strikes against Iran. Prices later recovered some of their losses.

However, an Iranian security official said that no talks were taking place between the two countries.

Market sources said US crude oil inventories had increased last week. According to the American Petroleum Institute, US oil stocks rose by 9 million barrels in the week ending November 6.

In contrast, Russia's oil refining capacity has fallen by around 30%, according to industry sources. They attributed the decline to renewed Ukrainian drone attacks since late October.

Meanwhile, representatives of US President Donald Trump have launched fresh efforts to end the war. As part of the initiative, Russian and Ukrainian officials met in Abu Dhabi on Tuesday. It was the first peace talks between the two countries since February.