Oil prices rose on Wednesday, recovering from a seven-week low reached in the previous session, as renewed geopolitical tensions in the Middle East and a significant draw in US crude inventories supported market sentiment.
Brent crude futures climbed 66 cents, or 0.7%, to $92.11 a barrel at 0406 GMT, while US West Texas Intermediate (WTI) crude rose 60 cents, or 0.7%, to $88.80 a barrel.
The rebound followed US military strikes on Iranian targets after President Donald Trump vowed to respond to the downing of a US Apache attack helicopter. The development marks a fresh escalation in tensions between Washington and Tehran and raises concerns about potential disruptions to global oil supply routes.
According to market analysts, the renewed conflict has reintroduced a geopolitical risk premium into oil markets, reversing earlier bearish sentiment driven by concerns over demand.
“While diplomatic efforts remain ongoing, the latest military exchanges have reintroduced a geopolitical risk premium into oil markets,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
The escalation has shifted trader focus back to supply security risks, particularly in the Strait of Hormuz, a critical chokepoint for global oil shipments.
In addition to geopolitical factors, oil prices were also supported by data showing a larger-than-expected draw in US crude inventories, signaling tighter near-term supply conditions.
The market reaction comes amid heightened uncertainty in the broader Middle East, where tensions between Israel and Iran-backed Hezbollah in Lebanon continue to complicate diplomatic efforts.
Tehran has warned it could resume hostilities if Israel continues its military operations against Hezbollah, further adding to regional instability.
Analysts say Israel’s ongoing campaign against Hezbollah has also complicated US-led efforts to expand a fragile ceasefire between Washington and Tehran into a more durable peace agreement.
Despite ongoing diplomatic discussions, traders remain cautious as geopolitical developments continue to drive volatility in global energy markets.
The latest price movement highlights how quickly oil markets are reacting to shifts in both inventory data and geopolitical risk, with investors closely watching for further escalation in the region.
