* Shipping traffic through Strait of Hormuz falls to six

vessels from 10-day average of about 11

* Iran says strait will remain closed until U.S. changes its

behavior

* Libya's NOC says it could declare force majeure if drone

attacks on Zawiya energy assets continue

By Scott DiSavino

Aug 11 (Reuters) - Oil prices edged up to a one-week high on

Tuesday as doubts about a potential U.S.-Iran peace deal fueled

concerns that Middle East supply disruptions would persist.

Brent futures rose $1.19, or 1.4%, to settle at

$88.91 a barrel, while U.S. West Texas Intermediate (WTI) crude

rose $1.07, or 1.3%, to settle at $83.20.

Those were the highest closes for both crude benchmarks since

July 31 for a second day in a row after both contracts jumped

about 5% on Monday as hopes for a peace deal between the U.S.

and Iran started to fade.

The Strait of Hormuz will remain closed as long as the U.S. does

not change its behavior and accept Iran's conditions to end the

war, the newly appointed secretary of Iran's Supreme National

Security Council, Mohsen Rezaei, said on Tuesday. About 20% of

global oil supply passed through the strait before the start of

the Iran war on February 28.

His comments are the strongest indication so far that any deal

in talks with Oman over the waterway would not immediately

reopen it to shipping if the U.S. does not also abide by its

commitments in a memorandum of understanding toward ending the

conflict reached between Washington and Tehran in June.

Shipping data showed that traffic through the Strait of Hormuz

dropped to six vessels on Monday, compared with a 10-day average

of about 11 vessels. Before the war, daily traffic through the

waterway averaged between 125 and 140 vessels a day.

Elsewhere in the Middle East, Yemen's Iran-aligned Houthis

attacked a Saudi ship carrying military equipment in Bab

el-Mandeb, between the Red Sea and the open Indian Ocean,

Houthi-run news agency Saba reported, while sources reported a

missile attack on a container ship off Pakistan in a suspected

U.S. strike.

Some producers in the Middle East are likely to struggle to

restore oil output to pre-conflict levels by the end of 2027,

even if trade patterns return to normal by early next year, the

U.S. Energy Information Administration said on Tuesday.

SUPPLY DISRUPTION IN LIBYA

In Libya, renewed violence in the strategic city of Zawiya has

disrupted the oil industry, with state oil firm the National Oil

Corporation saying it could declare force majeure if drone

attacks on energy assets in the city continued. Libya is a

member of OPEC.

The Abu Dhabi National Oil Company is offering spot crude in a

tender, its eighth issued since the start of June as the UAE

state oil company works to move oil from inside the Strait of

Hormuz, trade sources said.

In Europe, the Ukrainian military said on Tuesday it attacked an

oil refinery in the Russian city of Orsk, the second-largest

city in the Orenburg region and an important industrial hub.

The combination of Ukraine's attacks on Russian energy

infrastructure and the Iran war has limited global supplies and

boosted global energy prices - Brent futures are up about 44% so

far this year.

Russia was the world's third-biggest crude oil producer

behind the U.S. and Saudi Arabia in 2025, according to U.S.

energy data, and is a member of the OPEC+ group of countries,

which includes OPEC and allies.

U.S. OIL INVENTORIES

The oil market was waiting for weekly storage reports from

the American Petroleum Institute trade group later on Tuesday

and the U.S. Energy Information Administration on Wednesday.

Analysts estimated energy firms pulled 0.5 million barrels

of crude from storage during the week ended August 7.

If correct, it would be the second time stockpiles had

declined in three weeks. Stockpiles increased by 3.0 million

barrels in the same week last year and have increased by an

average of 3.1 million barrels over the past five years (2021 to

2025).