Oil Climbs Above $95 as Middle East Tensions Escalate and U.S. Crude Inventories Shrink

WTI crude futures rose above $95 per barrel on Wednesday, extending gains for a third consecutive session as escalating geopolitical tensions in the Middle East and tightening U.S. oil inventories reinforced concerns over global supply risks.

The latest rally comes amid growing uncertainty surrounding ongoing diplomatic negotiations between the United States and Iran. According to the U.S. Central Command (CENTCOM), Iran launched ballistic missiles toward neighboring countries, while U.S. forces responded with strikes on Qeshm Island following what Washington described as attempted attacks linked to Tehran.

Despite the military escalation, President Donald Trump maintained that diplomatic discussions with Iran remain active, rejecting reports from Iranian state media suggesting that negotiations had been suspended due to the renewed conflict in Lebanon.

The geopolitical developments have increased the risk premium embedded in oil prices, with traders closely monitoring potential disruptions to regional energy infrastructure and global crude supply routes.

Adding further support to prices, industry data released in the United States showed crude oil inventories fell by 6.8 million barrels last week. If confirmed by official figures from the U.S. Energy Information Administration (EIA) later on Wednesday, the decline would mark the sixth consecutive weekly drawdown in domestic crude stockpiles.

The combination of persistent inventory declines and heightened geopolitical uncertainty has strengthened bullish sentiment across energy markets, prompting investors to reassess supply-demand balances heading into the second half of the year.

Market participants are now awaiting official U.S. inventory data and further developments in the Middle East, both of which are expected to remain key drivers of oil price volatility in the coming sessions.