The casualties from the Red Sea attack have raised supply concerns once again, causing international oil prices to rise sharply, with Brent crude nearing $90.

On Wednesday, international oil prices rose. Although there were diplomatic indications that the Strait of Hormuz might reopen, the supply risks for global critical shipping channels continue to escalate due to deadly attacks on commercial vessels in the Red Sea and the Gulf of Oman. Benchmark Brent crude futures increased by about 0.93%, settling at $89.74 per barrel; U.S. WTI crude futures rose by 0.97%, closing at $84.01 per barrel. The Iranian-backed Houthi militants launched an attack on a cargo ship in the Strait of Mandeb on Tuesday, resulting in six fatalities, marking the first reported casualties from attacks on shipping in the Red Sea in over a year. Hours later, U.S. military officials reported that missiles were fired at a container ship, claiming it attempted to breach Washington's blockade of Iranian ports. These events highlight that the ongoing conflict in the Middle East, which has lasted nearly six months, is increasingly impacting two key global shipping routes, despite apparent progress in diplomatic efforts to restart negotiations concerning the Strait of Hormuz. Jose Torres, a senior economist at Interactive Brokers, stated that while the prospects for an agreement between the U.S. and Iran regarding the Strait of Hormuz have become clearer, concerns about Middle Eastern oil supply still persist in the market. Pakistan remains optimistic about a potential agreement between the U.S. and Iran, but Torres pointed out that the market is still awaiting substantial developments. In his research report on Tuesday evening, he noted, Investors have been betting on an agreement for weeks; at this stage, without tangible progress, yields are unlikely to decline significantly, and the stock market may struggle to rise further. He also mentioned that the slight increase in oil prices indicates that supply-side worries stemming from geopolitical conflicts have not yet dissipated.