Oil prices rose slightly, as attacks on ships near the Strait of Hormuz threatened shipping, while US oil industry data pointed to another drop in inventories.
Brent crude rose above $110 a barrel after Iran's state broadcaster reported that a supertanker had struck a sea mine in the Strait of Hormuz, without identifying the vessel or the time of the incident. West Texas Intermediate crude traded near $98 a barrel.
In the United States, the industry-funded American Petroleum Institute reported that U.S. crude oil inventories fell by 4.9 million barrels last week, according to a document seen by Bloomberg. If official data on Wednesday confirms this decline, it will be the third consecutive weekly drop. Gasoline and distillate inventories also fell.
Oil jumps 80% this year amid supply disruptions
Brent crude has jumped by about 80% this year, as escalating conflicts in the Middle East and between Russia and Ukraine have disrupted energy supplies, while refined products have seen even steeper increases.
Renewed attacks on oil tankers and energy infrastructure keep geopolitical risks high, even as oil flows from the Arabian Gulf recover.
Iran's strikes are increasingly targeting ship engine rooms, causing more damage than in previous phases of the conflict and increasing the risks to energy flows.
Talks to end the conflict continue without an imminent agreement.
Non-Iranian crude oil left the Arabian Gulf at a rate of approximately 9.1 million barrels per day during the first 20 days of this month, according to preliminary ship-tracking data from Vortexa, indicating a slowdown in oil flows through the Strait of Hormuz. The data may be revised as more information becomes available.
This rate appears to be much lower than the level indicated by the United States, which said earlier this month that 20 million barrels per day were passing through the Strait of Hormuz.
Meanwhile, talks aimed at ending the conflict are continuing, but reports that an agreement is close are inaccurate, according to a diplomat involved in the negotiations.
An earlier, unconfirmed report had sent oil prices tumbling from five-month highs on Tuesday, with Brent crude falling as much as 3.3% at one point in trading, before paring its losses.
Latest price movements
Brent crude futures for December delivery rose 1.2% to $110.13 a barrel at 9:19 a.m. in Singapore.
West Texas Intermediate crude futures for December delivery rose 1.2% to $98.99 a barrel.
