Oil prices rose slightly on Wednesday after two days of steep losses, with markets closely watching efforts to end the US-Iran war and restore shipping through the Strait of Hormuz.Brent crude futures rose 31 cents, or 0.39%, to $79.67 a barrel, while US West Texas Intermediate (WTI) crude gained 11 cents, or 0.15%, to $75.88 a barrel.The modest recovery comes after steep losses seen earlier in the week. Earlier on Tuesday, Qatar said that mediators were making progress in efforts to end the conflict. The comments pushed oil prices lower, although Tehran denied US President Donald Trump’s claim that talks were already under way.Brent settled below $80 a barrel on Tuesday for the first time since July 13.“The main sticking point appears to be whether Iran will continue to insist on a degree of control over the waterway, and whether the US will stand its ground and refuse that outcome,” analysts from IG said in a note cited by Reuters.Brent had closed more than 5% lower on Tuesday, extending the sharp declines recorded on Monday amid hopes that an agreement could be reached soon. Before the war began, around 20% of the world’s oil and liquefied natural gas passed through the Strait of Hormuz. In March alone, oil prices had risen 50%.Qatar’s Emiri office said US President Donald Trump and Qatar’s Emir Sheikh Tamim bin Hamad Al Thani discussed efforts to narrow differences between Washington and Tehran and improve the prospects for a lasting settlement during a phone call on Tuesday.Trump said on Monday that talks with Tehran had begun and described the situation as Iran’s “last chance” to reach a deal. Iranian officials, however, maintained that no negotiations with the United States were taking place.Market participants were also awaiting official US inventory data later on Wednesday.According to market sources citing figures from the American Petroleum Institute, US crude and gasoline inventories increased last week, while distillate stocks declined.Crude inventories rose by about 2.7 million barrels in the week ended July 31, the sources said, speaking on condition of anonymity.Official inventory data from the US Energy Information Administration (EIA), the statistical arm of the US Department of Energy, is scheduled to be released at 10:30 am ET (1430 GMT) on Wednesday.Meanwhile, even as global crude benchmarks have continued to inch higher, the spike is far lower than the $126 per barrel levels seen earlier during the conflict.
