Brent and WTI climb nearly 2% as geopolitical tensions escalate and US inventories drop twice the forecasted amount.
Brent crude settled 1.9% higher at $97.81, while WTI gained 2.4% to $96.02, driven by Iranian missile strikes on Gulf states and stalled US-Iran negotiations. The rally accelerated after US crude inventories fell by 8 million barrels, double the expected 4 million barrel draw, to 433.7 million barrels.
The IEA cautioned that global oil stockpiles could reach critically low levels ahead of peak summer demand if current drawdown trends persist. Earlier, US crude production dipped slightly to 13.707 million barrels per day, while distillate and gasoline inventories saw unexpected builds.
Both benchmarks extended gains from the previous session, reflecting heightened supply concerns amid geopolitical instability and tightening inventories.