Oil prices rose on Wednesday as investors weighed escalating geopolitical tensions in the Middle East against stronger-than-expected demand indicators from the United States.
Brent crude, the international benchmark, climbed 0.4% to $67.15 per barrel, up from $66.86 at the previous session’s close. Similarly, US West Texas Intermediate (WTI) crude rose by 0.5% to $65.05 per barrel, compared to $64.72 in the prior session.
The price gains were driven in part by renewed fears of supply disruptions following the fragile ceasefire between Israel and Iran. Although Israeli Prime Minister Benjamin Netanyahu declared the 12-day conflict over—claiming Iran’s nuclear program had been “dismantled”—tensions remain high.
Netanyahu warned of further strikes if Tehran resumed its nuclear ambitions, stating in a social media video, “Iran will not have a nuclear weapon.” However, US intelligence assessments suggest the strikes only temporarily delayed Iran’s progress, raising concerns that the conflict could reignite.
Tensions flared again after Israel reported intercepting two Iranian drones and accused Iran of launching a ballistic missile early Tuesday—actions that prompted retaliatory Israeli strikes on a radar site in Tehran. President Donald Trump acknowledged ceasefire violations from both nations, saying, “I’m not happy with Iran either, but I’m really unhappy with Israel going out this morning.”
The renewed instability has sparked concerns over the security of oil shipments through the Strait of Hormuz—a vital route for about 20% of global oil supply. Any disruption to this corridor could have significant implications for global energy markets.
Meanwhile, bullish demand signals from the US offered additional support for prices. The American Petroleum Institute (API) reported a 4.27 million-barrel drop in US crude inventories last week, far exceeding analysts’ expectations of a 600,000-barrel decline. The data suggests stronger consumption in the world’s largest oil market.
Traders now await official figures from the US Energy Information Administration (EIA), set for release later today. A confirmed inventory drawdown is likely to further reinforce upward momentum in oil prices.
