Oil prices climb amid doubts over US-Iran deal

Oil prices rose on Wednesday as uncertainty persisted over the likelihood of a deal that would soon restore flows through the Strait of Hormuz, even as officials spoke of progress.

Brent crude futures gained 72 cents, or 0.81 percent, to $89.63 a barrel, while US West Texas Intermediate crude rose 71 cents, or 0.85 percent, to $83.91.

According to Reuters, both benchmark contracts settled more than a dollar higher on Tuesday, reaching their highest closing levels since July 31. The rally continued after a nearly 5 percent jump on Monday as hopes for a US-Iran agreement faded.

Shipping data showed that traffic through the Strait of Hormuz dropped to six vessels on Monday, compared to a 10-day average of about 11 ships. Before the conflict, daily averages ranged from 125 to 140 vessels.

Citing American Petroleum Institute data, sources said US crude oil inventories saw a sharp increase in the week ending August 7, while gasoline and distillate stocks declined.

The sources indicated that crude inventories rose by about 9.1 million barrels, while gasoline and distillate stocks fell by 1.5 million barrels and 596,000 barrels, respectively, compared to the previous week.