Oil prices moved higher on Wednesday as investors waited for fresh US inflation data that could influence the Federal Reserve’s next decision on interest rates.
Concerns over the continued closure of the Strait of Hormuz also kept pressure on energy markets.
Both major crude benchmarks gained, with oil prices now up about 14 percent over the past week.
The ongoing standoff between the United States and Iran has raised fears that the disruption to oil shipments could continue.
The US consumer price index (CPI), due later Wednesday, is being closely watched by traders.
The figures could provide clues about whether the Federal Reserve will raise interest rates later this year.
The Fed kept rates unchanged at its July meeting, although three officials supported an increase.
Investors are now pricing in the possibility of at least one rate hike before the end of the year.
Another inflation report and a jobs report will be released before the Fed’s September meeting.
Higher oil prices could add to inflation pressures and make it harder for the central bank to lower borrowing costs.
The US economy also showed signs of weakening last week after data revealed that more than 20,000 jobs were lost in July.
Markets were also watching developments around the Strait of Hormuz, a key route for global oil shipments.
Hopes for a quick reopening received a small boost after Pakistan’s defence minister said the US and Iran were close to an agreement, but the optimism faded as both sides continued to demand compensation from the other.
The US military also said a US helicopter fired missiles at the engine room of a Panama-flagged cargo ship on Tuesday after it attempted to break the American blockade of Iranian ports.
Reports that Iran and Oman were discussing the reopening of the Strait of Hormuz to some maritime traffic also failed to calm oil markets significantly.
“Crude oil prices have surged in the last few days because the Strait of Hormuz remains effectively shut, and there are no signs of progress between the US and Iran,” Forex.com analyst Fawad Razaqzada said.
He said talks between Oman and Iran offered some relief but warned that discussions did not necessarily mean a breakthrough was close.
Iran has said the strait will remain closed until its demands are met.
Asian stock markets were mixed as investors waited for the US inflation figures.
South Korea’s Kospi rose more than 3 percent, helped by strong gains in chipmakers SK hynix and Samsung. The rebound followed heavy technology-led losses in July.
Tokyo, Shanghai, Taipei, Manila and Jakarta also recorded gains, while Hong Kong, Sydney, Singapore and Wellington fell.
Strong earnings from US artificial intelligence companies CoreWeave and Super Micro Computer also helped ease some concerns about the huge investment in AI technology and whether companies will eventually generate sufficient returns.
Key figures around 0210 GMT
West Texas Intermediate: up 0.7% at $83.78 a barrel, Brent crude: up 0.6% at $89.40 a barrel, Tokyo Nikkei 225: up 0.1% at 67,002.60, Hong Kong, Hang Seng: down 1.1% at 25,375.72, Shanghai Composite: up 0.1% at 3,939.29, Dow Jones: down 0.3% at 53,791.85, London FTSE 100: down 0.2% at 10,844.19.
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