Oil prices climbed approximately one percent on Wednesday, rebounding from a seven-week low as geopolitical tensions escalated and domestic supplies tightened. The rally followed the U.S. military's launch of new strikes against Iranian targets, a direct response to the downing of a U.S. Apache helicopter. This move threatens to unravel a fragile ceasefire between Washington and Tehran.
Brent futures rose 83 cents, or 0.9 percent, to $92.29 a barrel. U.S. West Texas Intermediate (WTI) crude climbed 68 cents, or 0.8 percent, to $88.97. These gains reversed recent losses that had seen Brent settle at its lowest since mid-April and WTI weaken to levels not seen since late May.
The conflict remains volatile. Tehran has warned it will resume hostilities if Israel continues attacks on Hezbollah in Lebanon. Simultaneously, Iran has blocked most shipping through the Strait of Hormuz, a critical chokepoint carrying one-fifth of the world's crude oil and liquefied natural gas. While the U.S. has imposed its own blockade on Iranian ports, Energy Secretary Chris Wright noted that ship traffic in the Gulf is currently rising despite ongoing diplomatic struggles.
On the supply side, market data indicates a persistent drawdown in U.S. stocks. According to the American Petroleum Institute, crude inventories fell by 9.12 million barrels for the week ended June 5, marking an eighth consecutive weekly decline. Gasoline stocks also dropped by 1.19 million barrels. As the United States acts as a marginal supplier during this conflict, lower inventories risk constraining exports to Asia and Europe, further supporting higher prices.