Oil prices rise 1% following US strikes on Iran and declining US crude inventories
Oil prices climbed approximately 1% on Wednesday after the U.S. military launched strikes against Iranian targets in response to the downing of a U.S. Apache helicopter, and as U.S. crude inventories fell for an eighth consecutive week. The strikes represent an escalation in tensions between Washington and Tehran that had recently achieved a fragile ceasefire. The price movement reflects market concerns about potential supply disruptions amid ongoing geopolitical tensions in the Middle East.
Oil prices rose on Wednesday, with Brent crude gaining 0.9% to $92.29 per barrel and U.S. West Texas Intermediate crude climbing 0.8% to $88.97, rebounding from seven-week lows reached the previous day. The price increase followed U.S. military strikes on Iranian targets after President Trump vowed to respond to the downing of an American Apache attack helicopter, escalating tensions after a recent ceasefire between Washington and Tehran. Supply-side pressures also supported prices, as U.S. crude inventories fell by 9.12 million barrels in the week ended June 5, marking the eighth consecutive weekly decline, while gasoline stocks dropped 1.19 million barrels. The broader geopolitical context includes ongoing disputes over shipping through the Strait of Hormuz, which carries approximately one-fifth of global crude oil and liquefied natural gas, with both Washington and Tehran maintaining blockades. U.S. Energy Secretary Chris Wright noted that ship traffic in the Gulf and oil exports through the Strait are rising despite the diplomatic impasse.
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Oil rises nearly 1% as US launches new strikes against Iran, supply tightens
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