Oil prices slipped on Wednesday, taking a breather after big gains over the previous three sessions. Traders were focused on President Donald Trump’s visit to China for any traction on the Iran war after diplomacy efforts between Washington and Tehran stalled.

Meanwhile, the Middle East conflict continued to take a toll on global oil demand and supply, reports from the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) showed.     

The U.S. dollar firmed on Wednesday, as yet more hotter-than-expected inflation data kept expectations of interest rate hikes later this year in play. Investors were also eyeing President Donald Trump’s high-stakes trip to China for any traction on the Iran war after a protracted impasse between Washington and Tehran.

At 16:50 ET (20:50 GMT), the U.S. dollar index, which tracks the greenback against a basket of six major peers, rose 0.2% to 98.49.

Oil prices climbed on Tuesday, with both crude benchmarks topping $100 a barrel. The advance came amid an impasse between the U.S. and Iran, denting hopes for a swift end to the war.

A key U.S. inflation report also showed an outsized impact of surging oil prices due to the Middle East conflict.

At 15:50 ET (19:50 GMT), Brent crude futures expiring in July, the global oil benchmark, rose 3.4% to $107.72 a barrel, while U.S. West Texas Intermediate crude futures expiring in June advanced 4.3% to $102.29 a barrel.

HOUSTON, May 11 (Reuters) - Oil prices settled almost 3% higher on Monday after U.S. President Donald Trump said the ceasefire with Iran was "on life support," leaving the Strait of Hormuz largely closed with no clear end in sight to the war.

Brent crude futures settled up $2.92, or 2.88%, at $104.21 a barrel. U.S. West Texas Intermediate settled at $98.07 a barrel, up $2.65, or 2.78%. Brent reached a session high of $105.99 and WTI hit a peak of $100.37.