Oil prices rebounded sharply on Wednesday as renewed military strikes in the Middle East reignited concerns over global oil supplies, while a larger-than-expected decline in U.S. crude inventories provided additional support to the market. The renewed escalation reversed much of the previous session’s losses as traders reassessed geopolitical risks surrounding the region’s critical energy infrastructure.
Brent crude settled at $90.74 per barrel, up 7.91%, while West Texas Intermediate (WTI) climbed 6.56% to $84.46 per barrel. The rally followed renewed U.S. and allied military strikes against Iran-backed groups, along with additional sanctions targeting Iran’s maritime and energy sectors.
Markets remained focused on the Strait of Hormuz, where vessel traffic continued to operate well below normal levels. Iran rejected proposals for a regional framework to manage shipping through the waterway, while threats to commercial shipping in the Bab el-Mandeb Strait persisted as Yemen’s Houthi forces considered additional measures that could further disrupt global trade routes.
Additional support came from U.S. inventory data showing crude stockpiles fell by 7.2 million barrels to their lowest level since 2018, reflecting strong export demand and firm domestic consumption. Reports that OPEC+ is likely to pause planned production increases later this year also reinforced expectations of a tighter global oil market despite ongoing geopolitical uncertainty.