Oil prices edged up about one per cent on Wednesday as the market focused more on Middle East supply disruptions than on comments by US President Donald Trump that the war on Iran was close to over.
Trump told the world to brace for an "amazing two days," as the army chief of mediator Pakistan arrived in Tehran in a bid to prevent renewed conflict.
Brent futures rose $1.14, or 1.2 per cent, to $95.93 a barrel at 12:02 EDT (16:02 GMT), while US West Texas Intermediate crude rose $1.19, or 1.3 per cent, to $95.93.
45 days after Iran's Revolutionary Guards declared the strait closed, effectively shutting in about 20 per cent of global oil and LNG shipments, transit through it remains at only a fraction of the 130-plus daily crossings before the war, sources said.
The US has enacted a blockade of shipping leaving Iranian ports that its military said has completely halted trade going in and out of the country by sea.
"Recent tracking data shows a small but increasing number of tankers moving through the Strait of Hormuz, even as overall traffic remains sharply below normal levels," analysts at energy consulting firm Gelber Associates said.
"The result is a market that is no longer pricing a full-scale outage, but still holding a residual premium as flows recover unevenly rather than snapping back to normal," the Gelber analysts added.
Finance ministers from almost a dozen countries led by Britain called on the US, Israel and Iran to implement their ceasefire in full and said the conflict would weigh on the global economy and markets even if it was resolved soon.
Treasury Secretary Scott Bessent said the US economy will be slower this quarter, but it is in good shape and will rebound, adding that oil prices do not appear to be weighing on inflation expectations.
Adding to economic uncertainty, Trump threatened to fire Jerome Powell from his separate seat on the US central bank's Board of Governors if the Federal Reserve chair does not vacate that post as well when his term as Fed chief ends on May 15.
Trump wants the Fed to cut rates, which would reduce consumer costs and could boost economic growth and demand for oil.
Higher oil prices could lead to a rise in consumer inflation expectations, Chicago Fed Bank President Austan Goolsbee told the Financial Times in an interview, adding the US central bank faces a double danger from the Iran war and tariffs.
The war in the Middle East has intensified strains on an already fragile global fiscal situation, with higher interest rates and rising energy prices fuelled calls for support from emerging markets and developing economies, the International Monetary Fund said on Wednesday in its Fiscal Monitor report.
Japan said it would establish a financial framework worth about $10 billion to help Asian countries procure energy resources and bolster their stockpiles.
Russia is ready to increase energy supplies to China ahead of an expected visit by President Vladimir Putin, Russian news agencies quoted Foreign Minister Sergei Lavrov as saying.
One factor supporting US crude prices was the surprise US Energy Information Administration report showing energy firms pulled 0.9 million barrels of crude from stockpiles during the week ended April 10.
That compared with a 0.15 million barrels build that analysts forecast in a Reuters poll and an increase of 6.1 million barrels that market sources said the American Petroleum Institute trade group reported on Tuesday.
(Reporting by Scott DiSavino in New York, Stephanie Kelly in London, Katya Golubkova in Tokyo and Emily Chow in Singapore; Editing by Peter Graff, Alexander Smith and Chris Reese)