Oil rises on Middle East supply worries

Oil prices rose on Wednesday amid Middle East supply concerns, as traders remained wary of potential threats to shipping routes and oil infrastructure in the region. Brent crude futures gained 85 cents, or 0.78 percent, to $109.64 per barrel, while US West Texas Intermediate (WTI) crude increased 76 cents, or 0.78 percent, to $98.58 per barrel.

A supertanker caught fire after colliding with a sea mine south of the Strait of Hormuz, according to Iran's Revolutionary Guards Navy, which reported at least 18 vessel attacks over two weeks. Attacks on tankers have now extended beyond the Strait of Hormuz, with Iranian forces targeting vessels in the Gulf of Oman and threatening ship-to-ship transfers.

The Houthis claimed responsibility for attacks on Saudi Aramco sites and airports in Yemen, intensifying the conflict. Meanwhile, prices had declined the previous session after Iran's president met with Pakistan's army chief in Tehran to discuss mediation efforts. Brent crude futures ended down 76 cents, or 0.69 percent, at $108.79 per barrel, while US WTI crude settled down $1.87, or 1.8 percent, at $101.79.

Iranian Foreign Minister Abbas Araqchi stated that Iran has not received a response from Saudi Arabia or the Houthis to its proposal for peace talks. Energy Department officials in the US confirmed they were collaborating with refiners worldwide to increase fuel production, as a diesel shortage has led to rising prices. Crude oil stocks in the US were expected to have dropped last week, along with product inventories, according to a Reuters poll of eight analysts.