By Stephanie Kelly
- Oil prices rose slightly on Wednesday, recovering somewhat from their sharp decline over the previous two days, as traders evaluated the reliability of the truce established between Iran and Israel.
Brent crude futures increased by 75 cents, or 1.1%, reaching $67.89 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude climbed by 71 cents, or 1.1%, to stand at $65.08.
Brent reached its lowest point on Tuesday since June 10, and WTI hit its nadir since June 5, prior to Israel’s unexpected assault on crucial Iranian military and nuclear sites on June 13.
Prices surged to their highest levels in five months following the U.S. assault on Iran's nuclear sites over the weekend.
U.S. airstrikes did not destroy Iran's nuclear capability and only set it back by a few months, according to a preliminary U.S. intelligence assessment, as a shaky ceasefire brokered by U.S. President Donald Trump took hold between Iran and Israel.
On Tuesday earlier, Iran and Israel indicated that the aerial conflict between their forces was temporarily halted following President Trump’s public rebuke of both countries for breaching a truce agreement.
Following the conclusion of 12 days of conflict during which both nations eased civilian limitations, the U.S. launched strikes against Iran’s uranium-enrichment sites. Each side then attempted to declare themselves as victorious.
The direct participation of the U.S. in the conflict caused concern among investors regarding the Strait of Hormuz, a crucial passage located between Iran and Oman. This strait sees an immense volume of roughly 18 to 19 million barrels per day of crude oil and fuels passing through, representing approximately one-fifth of worldwide usage.
Investors were looking forward to U.S. governmental information about home-based oil reserves and fuel inventories scheduled for release on Wednesday. According to industry insiders referencing the American Petroleum Institute statistics from Tuesday, U.S. crude supplies dropped by 4.23 million barrels during the week concluding on June 20. [API/S] [EIA/S]
(Reported by Stephanie Kelly; Edited by Christopher Cushing)