Oil prices extended their gains on Wednesday, rebounding slightly after losses in the previous two sessions, as investors evaluated the durability of the ceasefire between Iran and Israel.
Latest Updates on Oil Prices
- Brent crude rose by $1.11, or 1.68%, to reach $67.28 per barrel.
- West Texas Intermediate (WTI) gained $1.12, or 1.74%, to reach $65.49 per barrel as of 08:07 GMT.
Brent closed Tuesday at its lowest level since June 10, while WTI hit its lowest since June 5—levels not seen since before Israel launched a surprise strike on key military and nuclear facilities in Iran on June 13, according to Reuters.
Oil prices had surged to five-month highs earlier this week following U.S. airstrikes on Iranian nuclear facilities.
However, a preliminary assessment by U.S. intelligence suggested that while the strikes did not destroy Iran’s nuclear capabilities, they did delay its nuclear program by several months.
Violations of Ceasefire Threat Oil Prices
The fragile ceasefire, brokered by U.S. President Donald Trump, has so far held between Iran and Israel.
Earlier on Tuesday, both Iran and Israel hinted that their aerial conflict had come to a halt—at least for now—following a public reprimand from Trump over violations of the ceasefire agreement.
The U.S.’s direct intervention in the conflict has raised investor concerns about the Strait of Hormuz—a narrow waterway between Iran and Oman through which 18 to 19 million barrels of crude oil and fuel pass daily, accounting for nearly one-fifth of global consumption.
Crude Inventories Fell by 4.23 million Barrels
Investors are now awaiting official U.S. government data on domestic crude and fuel inventories, expected later Wednesday.
According to market sources citing data from the American Petroleum Institute released on Tuesday, U.S. crude inventories fell by 4.23 million barrels in the week ending June 20.
