Oil prices climbed by more than 1% in early trading on Wednesday as renewed hostilities in the Middle East heightened concerns over regional stability and energy supplies. The gains came after Iran launched missiles toward Kuwait and Bahrain, while diplomatic efforts between Tehran and Washington showed little sign of progress.
Brent crude futures rose by $1.05, or 1.09%, to $97.05 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $1.01, or 1.08%, to reach $94.77 per barrel.
Both benchmarks had already settled at their highest levels in a week during the previous trading session.
The U.S. military said Iran launched ballistic missiles toward Kuwait and Bahrain, but none reached their intended targets. It added that American forces carried out airstrikes on Iran’s Qeshm Island in response to the attempted attacks.
Markets continue to closely monitor developments related to the conflict with Iran, as Tehran is reportedly reviewing a proposed agreement with the United States aimed at ending the confrontation.
Iranian media reported on Tuesday that Tehran has not communicated with Washington for several days, despite U.S. President Donald Trump stating that negotiations remain ongoing.
Daniel Hynes, Senior Commodity Strategist at ANZ Bank, said efforts to fully reopen the Strait of Hormuz face significant obstacles, noting that Iran has laid mines across large sections of the strategically important waterway.
“There has been a slight increase in the number of vessels attempting to transit the strait, but overall traffic remains well below pre-conflict levels,” Hynes said.
More than three months after U.S. and Israeli strikes on Iran, the conflict appears to have reached a stalemate under a fragile ceasefire.
On the supply side, market sources citing data from the American Petroleum Institute (API) reported that U.S. crude oil inventories fell for a seventh consecutive week.
According to the sources, crude stockpiles declined by 6.8 million barrels during the week ending May 29.
Official U.S. government inventory data is scheduled to be released at 14:30 GMT on Wednesday.
Source: Reuters.
