Oil prices edged higher on Wednesday, rebounding from a seven-week low hit in the previous session, as fresh geopolitical tensions and tightening US supply data lifted market sentiment.
Brent crude gained 83 cents, or 0.9 percent, to $92.29 per barrel, while US West Texas Intermediate rose 68 cents, or 0.8 percent, to $88.97. The recovery followed a sharp drop a day earlier, when both benchmarks slipped to their weakest levels in weeks amid easing fears after a brief lull in Middle East hostilities.
The latest uptick came after the US military carried out new strikes on Iranian targets, marking a renewed escalation in tensions between Washington and Tehran. The move followed remarks by US President Donald Trump, who pledged a response after the downing of a US Apache attack helicopter. The development has raised concerns that a fragile ceasefire understanding could once again come under strain.
Market sentiment has remained sensitive to shifting signals from the region. Earlier optimism had built after Israel and Iran paused direct strikes following calls from Washington to de-escalate. However, that calm has been repeatedly tested, with Iran warning it could resume hostilities if Israeli operations against Hezbollah in Lebanon continue. The ongoing tensions have kept traders wary of any disruption to oil flows through key routes.
One of the biggest concerns remains the Strait of Hormuz, a vital corridor that typically carries around a fifth of global oil and liquefied natural gas supplies. Tehran has continued to restrict shipping activity in the area, while Washington has imposed its own restrictions on Iranian ports, adding further uncertainty to global supply chains.
On the supply side, prices also found support from signs of tightening US inventories. Data cited from the American Petroleum Institute showed crude stocks in the United States fell by 9.12 million barrels in the week ended June 5, marking an eighth straight weekly decline. Gasoline inventories also dropped by 1.19 million barrels over the same period.
The continued drawdown highlights steady demand and relatively constrained supply at a time when the US has been playing a growing role as a marginal exporter of crude and refined products, particularly to Asia and Europe.
Energy officials have noted that while shipments through the Gulf and the Strait of Hormuz have not fully stalled, the situation remains fragile. Any further escalation, analysts warn, could quickly disrupt flows and add renewed pressure on global fuel prices, with potential knock-on effects for transport and household energy costs worldwide.
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