Geopolitical escalation and a 3.3 million barrel draw in US inventories lift crude prices amid fears of energy supply disruptions.
West Texas Intermediate crude oil climbed back to around $81.00 per barrel Wednesday, reversing a three-day decline as renewed Middle East hostilities stoked supply concerns. The rebound followed reports of Iranian-backed drone strikes on Saudi oil facilities and US military intercepts of Iranian attacks on American forces in the region.
Prices had softened earlier in the week amid relative calm, but tensions flared after Iran rejected a diplomatic proposal for shared control of the Strait of Hormuz. Meanwhile, API data showed US crude inventories fell by 3.3 million barrels last week, reinforcing tight supply fundamentals.
Markets remain on edge as retaliatory strikes between US forces and Iran-backed groups raise the risk of broader disruptions to global energy flows. Diplomatic efforts have stalled, with no immediate resolution in sight.