Renewed Middle East hostilities and a larger-than-expected U.S. crude inventory draw drove oil prices up over 4.5% in early trade.
Brent crude surged to $87.95 per barrel, a 4.59% gain, while West Texas Intermediate rose 4.58% to $82.89 in early Asian trading. The rally erased losses from Tuesday’s selloff, fueled by fresh Middle East strikes and a bullish API inventory report showing a draw in U.S. crude stocks.
Prices had declined last week after the U.S. halted 13 consecutive nights of attacks on Iran, sparking hopes for diplomatic progress. Those expectations dimmed as geopolitical risks resurfaced, outweighing recent bearish sentiment.
The API data, released after market close, added upward pressure, though official EIA figures are due later today. Traders are closely monitoring developments in the Middle East for further supply disruption risks.