Oil prices rose about 1% on Wednesday, extending gains for a fifth straight session as concerns mounted over potential supply disruptions from Iran amid rising fears of a U.S. military strike and possible retaliation across the Middle East. Brent crude futures settled up $1.05, or 1.6%, at $66.52 a barrel, while U.S. West Texas Intermediate crude rose 87 cents, or1.4%, to $62.02.
Iran warned regional U.S. allies that their bases could be targeted if Washington launches an attack, as the United States reportedly repositioned assets from key locations in the region in response to escalating tensions. President Donald Trump urged Iranians to continue protesting and suggested U.S. support was forthcoming, further fueling market anxiety.
Analysts said the unrest has increased the geopolitical risk premium in oil prices, even though demonstrations have not yet spread to Iran’s core oil-producing regions, limiting any immediate impact on physical supply.
Price gains were partially capped after U.S. data showed a larger-than-expected build in crude and gasoline inventories last week, reflecting higher refinery runs and increased imports. Still, traders appeared more focused on geopolitical risks than on the inventory figures.
Additional supply concerns were offset by signs of rising output from Venezuela, where production cuts imposed during a U.S. embargo are being reversed and crude exports have begun to resume. Two supertankers recently departed Venezuelan waters carrying roughly 1.8 million barrels each, potentially marking the first shipments under a broader effort to restart oil flows