Oil prices climb on Wednesday 

Oil prices rose more than 1 per cent on Wednesday, extending gains from the previous session as renewed Middle East hostilities and stalled negotiations between Iran and the United States heightened supply concerns.

Brent crude increased 1.6 per cent to $97.56 a barrel, while US West Texas Intermediate (WTI) gained 1.7 per cent to $95.37.

The rise followed reports that Iran launched ballistic missiles toward Kuwait and Bahrain, though no targets were hit. The US military said it responded with strikes on Iran’s Qeshm Island. Analysts said the lack of progress in US-Iran talks, combined with warnings from the International Energy Agency (IEA) about critically low global oil inventories, added a stronger risk premium to prices.

Traders are closely monitoring diplomatic developments after Iranian media reported that Tehran is reviewing a US proposal aimed at ending the conflict. However, communication between the two sides has reportedly slowed despite claims that negotiations remain ongoing.

Concerns over supply disruptions also persist. Analysts noted that efforts to fully reopen the Strait of Hormuz remain difficult due to Iranian naval mines, with vessel traffic still well below pre-conflict levels.

Meanwhile, US crude inventories fell for a seventh consecutive week, according to industry data, reinforcing fears of tightening global supplies ahead of peak summer demand.

Attribution: Reuters