Brent crude climbs to $92.11 as renewed military strikes and falling US inventories add risk premium to global oil markets.
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Oil prices rose on Wednesday, recovering from a seven-week low, as renewed US military strikes on Iran and a continued drawdown in US crude inventories heightened concerns over global supply.
Brent crude futures gained 66 cents, or 0.7%, to $92.11 per barrel, while West Texas Intermediate (WTI) rose 60 cents, or 0.7%, to $88.80.
The uptick followed reports of US strikes on Iranian targets after President Donald Trump vowed to respond to the downing of a US Apache attack helicopter. The escalation has raised fears that an already fragile ceasefire between Washington and Tehran could collapse.
Market analysts said the renewed hostilities have reintroduced a geopolitical risk premium into oil prices, with traders closely watching for any disruption to supply routes.
Tensions remain elevated as Iran has warned of further retaliation, while concerns persist over shipping security in the Strait of Hormuz, a key global energy transit route.
In addition to geopolitical risks, prices were supported by tightening supply conditions. Data from industry sources showed US crude inventories fell for an eighth consecutive week, alongside a drop in gasoline stocks, signalling stronger demand and reduced supply buffers.
Analysts warn that if disruptions continue into the coming months, oil prices could see further upward pressure amid seasonal demand growth and constrained global inventories.
