Oil prices rise as attacks dent hopes for Strait of Hormuz reopening

Oil prices have jumped as attacks on shipping in the Middle East cast doubt on prospects for a breakthrough in negotiations to reopen the Strait of Hormuz.

Brent crude rose more than 2 percent overnight into Wednesday, taking the international benchmark to close to $90 a barrel.

Brent futures for October delivery stood at $89.61 as of 03:00 GMT, up about 24 percent compared with before the start of the US-Israel war on Iran in late February.

“Markets have not completely lost hope for a deal, but confidence is clearly eroding,” Tim Waterer, chief market ‌analyst at  Australia-based KCM Trade in Sydney, told Al Jazeera.

“The longer talks drag on without visible progress, and the more complex the reported demands become, the greater the scepticism that a workable agreement can be reached quickly,” Waterer said.

“Optimism from earlier in the month is steadily being replaced by a more cautious, risk-premium-driven stance.”

Yemen’s internationally recognised government on Tuesday accused the Iran-aligned Houthis of killing six in missile attacks on a commercial vessel in the Bab al-Mandeb strait, which divides the Arabian Peninsula from the Horn of Africa.

Yemen’s coastguard said the victims included two members of the security forces who had been deployed on a rescue mission following the initial attack.