Oil prices rose on Wednesday as growing fears over Middle East supply disruptions and fading hopes for a US-Iran peace deal increased market uncertainty.

Brent crude futures gained 72 cents, or 0.81%, to reach $89.80 a barrel. US West Texas Intermediate (WTI) crude rose 71 cents, or 0.85%, to $84.09 a barrel.

Both benchmarks had gained more than $1 on Tuesday, closing at their highest levels since July 31. Oil prices also jumped nearly 5% on Monday as hopes for a peace agreement between Washington and Tehran weakened.

Concerns increased after reports of separate attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb by the US and Iran-backed Yemen-based Houthi forces.

Iranian security official Mohsen Rezaei said the Strait of Hormuz would remain closed until the US accepts Iran’s demands, including the release of frozen Iranian assets and an end to other regional conflicts.

Shipping data showed only six vessels passed through Hormuz on Monday, compared with an average of about 11 per day over the previous 10 days. Before the conflict, around 125 to 140 vessels crossed the waterway each day.

However, rising US crude inventories limited the oil price increase. API data showed crude stocks rose by about 9.1 million barrels in the week ending August 7.

Official EIA data is due Wednesday. A confirmed inventory increase could ease supply shortage fears. The EIA expects Middle East crude supply disruptions of around 600,000 barrels per day to continue through the end of 2027.