Oil rises, gold recovers, dollar nears two-week high
Oil prices rose on Wednesday after hitting two-month lows, driven by navigation concerns in the Strait of Hormuz despite hopes for US-Iranian de-escalation. Brent climbed 0.78% to $92.20, and West Texas Intermediate rose 0.57% to $86.53. 37 ships were attacked in October, the highest monthly number since the war began.
Oil prices rose in Wednesday trading after hitting two-month lows in the previous session, driven by continued concerns over navigation disruptions in the Strait of Hormuz, despite hopes for a possible de-escalation between the United States and Iran. Brent crude futures rose 71 cents, or 0.78%, to $92.20 per barrel, while US West Texas Intermediate crude rose 49 cents, or 0.57%, to $86.53. The Washington Institute for Near East Policy reported that 37 ships were attacked in October, the highest monthly number since the war began, with ten attacks recorded since the start of November. Analysts at the London Stock Exchange Group warned that any potential agreement would not necessarily lead to a quick return of navigation to normal levels, as increased shipping flows would remain tied to mine clearance, insurance costs, and shipowners' willingness to take risks. Oil prices had fallen by more than three dollars per barrel early Tuesday following statements by US officials downplaying the need for additional military strikes on Iran, before paring losses after an Iranian security official denied talks between the two sides. Gold is recovering as the dollar nears a two-week high, supported by US inflation data.