Casualties and attacks in the Red Sea have caused supply concerns to rise again. International oil prices are rising in response, and oil is hitting 90 US dollars

The Zhitong Finance App learned that international oil prices rose on Wednesday. Despite news at the diplomatic level that the Strait of Hormuz is expected to be reopened, the supply risk of key global shipping routes is further heating up in view of fatal attacks on merchant ships in the Red Sea and the Gulf of Oman.

Benchmark Brent crude futures rose about 0.93% to $89.74 a barrel; US WTI crude futures rose 0.97% to close at $84.01 a barrel.

The Houthis, supported by Iran, launched an attack on a freighter in the Mander Strait on Tuesday, killing 6 people. This is the first time in more than a year that human casualties have been reported in an attack on Red Sea shipping. A few hours later, the US military claimed to have fired a missile at a container ship in an attempt to break through Washington's blockade of Iranian ports.

The above incident highlights that the Middle East conflict, which has been going on for nearly six months, is having an increasing impact on the world's two key shipping routes, even though negotiations on restarting the Strait of Hormuz seem to be progressing at the diplomatic level.

Jose Torres, senior economist at Interactive Brokers, said that although the prospects for an agreement between the US and Iran on the Strait of Hormuz are clear, market concerns about Middle Eastern oil supply are still pervasive. The Pakistani side expressed optimism that the US and Iran have reached an agreement, but Torres pointed out that the market is still waiting for substantial progress.

In a research report on Tuesday evening, he said, “Investors have been betting on the implementation of the agreement for several weeks. At this stage, without real progress, it may be difficult for yields to decline significantly, and it will be difficult for the stock market to rise further.” At the same time, he pointed out that the slight increase in oil prices itself indicates that supply-side concerns caused by the geopolitical conflict have not yet dissipated.