Geopolitical tensions and a larger-than-expected US inventory draw drive oil prices higher after US resumes military action.
West Texas Intermediate crude surged past $84.00, extending a 7% rally over two days as US airstrikes on Iran ended a brief truce. The military action dashed hopes for a negotiated de-escalation, adding a risk premium to oil markets already pressured by supply concerns.
US commercial crude inventories fell by 7.167 million barrels last week, nearly triple the 2.5 million draw analysts expected. The decline follows a 2.01 million barrel build the prior week, signaling tightening supply amid ongoing Middle East hostilities.
Prices jumped after President Trump vowed retaliation for a drone attack on a US-owned tanker in Egypt, following earlier missile strikes on a US base in Jordan and coordinated US-Saudi strikes on Iran-backed militias.