Oil prices rise on U.S.-Iran tensions and crude stock draw

Global oil prices recovered on Wednesday, rising nearly one percent after suffering steep losses in the previous session, as renewed military tensions between the United States and Iran heightened concerns over supply disruptions

Global oil prices recovered on Wednesday, rising nearly one percent after suffering steep losses in the previous session, as renewed military tensions between the United States and Iran heightened concerns over supply disruptions and fresh data pointed to a significant decline in U.S. crude inventories.

International benchmark Brent crude gained 83 cents, or 0.9 percent, to trade at $92.29 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 68 cents, or 0.8 percent, to $88.97 per barrel. The rebound came a day after both benchmarks touched multi-week lows amid hopes that hostilities in the Middle East could ease.

Market sentiment shifted after the U.S. military carried out new strikes on Iranian targets. The operation followed President Donald Trump’s pledge to retaliate after a U.S. Apache attack helicopter was reportedly brought down overnight. The latest developments have intensified fears of a broader conflict and raised doubts about the future of the fragile ceasefire efforts between Washington and Tehran.

Traders closely monitored the geopolitical situation as tensions threatened to destabilize one of the world’s most important energy-producing regions. Any prolonged conflict could disrupt oil supplies and shipping routes, creating additional volatility in global energy markets.

Although direct military exchanges between Israel and Iran had eased in recent days, uncertainty remains high. Tehran has warned that it could resume military action if Israeli operations against Hezbollah in Lebanon continue. Analysts believe the situation has complicated diplomatic efforts aimed at achieving a longer-term settlement in the region.

Supply concerns have also been amplified by disruptions in maritime traffic through the Strait of Hormuz, a strategic waterway that handles roughly one-fifth of global crude oil and liquefied natural gas shipments. Restrictions affecting shipping activity in the area have kept traders on edge, despite reports suggesting that some oil exports and vessel movements have recently improved.

Adding support to prices, industry data showed a sharp decline in U.S. crude oil inventories. According to market sources citing figures from the American Petroleum Institute (API), U.S. crude stockpiles fell by approximately 9.12 million barrels during the week ending June 5. Gasoline inventories also declined by around 1.19 million barrels, indicating strong demand and tighter supply conditions.

The inventory draw marked the eighth consecutive weekly decline in U.S. crude stocks, reinforcing expectations that supplies in the world’s largest oil-consuming nation are becoming increasingly constrained.

Energy analysts noted that lower inventories could limit the United States’ ability to maintain elevated export levels to international markets. During recent months, the U.S. has played a key role in supplying crude oil and refined products to buyers in Europe and Asia. Any reduction in available export volumes could further tighten global supply and place upward pressure on prices.