Oil prices rose on Wednesday, 11 November, recovering from two-month lows as fresh attacks on shipping in the Strait of Hormuz revived concerns over global energy supplies, despite hopes of a de-escalation in the US-Israeli war on Iran.

Brent crude futures stood at $92.53 a barrel on Wednesday morning, up about 1.1 per cent, after settling on Tuesday at $91.49, down 1.17 per cent and the lowest settlement since August. Brent had briefly traded below $90 on Tuesday, touching $89.15, for the first time since August. US West Texas Intermediate crude was at $86.68, after settling on Tuesday at $86.04.

Attacks on shipping in the Strait of Hormuz

Iran's Revolutionary Guards Navy said on Tuesday that two tankers caught fire after hitting naval mines on what it called an unauthorised route in the strait. The United Kingdom Maritime Trade Operations agency said a tanker was struck north-east of Lima in Oman on Tuesday.

Recent data showed little sign of fewer attacks in November, after 37 ships were attacked in October, the highest monthly total since the start of the Middle East war, according to data from the Washington Institute for Near East Policy.

June Goh, senior analyst at Sparta Commodities, said there had been an increase in vessel attacks in Gulf shipping lanes amid uncertainty over the diplomacy talks, adding that the main driver for oil was the extent to which Iran would come to the table with US demands to reach a diplomatic agreement.

Stocks build and a long slide from $118

Analysts at LSEG Oil Research said in a note on 10 November that even if a deal were struck, an increase in flows through the waterway would still depend on mine clearance, insurance costs and whether shipowners would be willing to take the risk.

Meanwhile, US crude oil stocks rose by 9 million barrels in the week ended 6 November, according to market sources citing data from the American Petroleum Institute, adding to pressure on prices.

In the previous session, oil had fallen by more than $3 a barrel after US officials downplayed the need for further military strikes against Iran, although some losses were recovered after an Iranian security official said no talks were taking place between the two sides. Brent has fallen about 22 per cent from its late-October high near $118.