Crude oil prices moved higher on Wednesday, recovering from multi-week lows recorded in the previous session, as investors reacted to escalating tensions between the United States and Iran and signs of tightening supply in the global energy market.
Brent crude futures rose 0.9% to US$92.29 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.8% to US$88.97 per barrel. Real-time trading data showed WTI crude at US$89.10, up 1.02%, while Brent crude traded at US$92.48, higher by 0.73%.
Oil prices received support after the U.S. military launched new strikes against Iranian targets. The action followed President Donald Trump's pledge to respond after a U.S. Apache attack helicopter was reportedly brought down overnight.
The latest escalation has raised concerns that the fragile ceasefire between Washington and Tehran could collapse, increasing the risk of broader disruptions across the Middle East. The region remains critical to global oil production and exports, making geopolitical developments a key driver of crude oil prices.
Although Israel and Iran had recently halted direct attacks following diplomatic pressure from Washington, tensions remain elevated. Tehran has warned that hostilities could resume if Israel continues military operations against Hezbollah in Lebanon.
Investors are also closely monitoring developments in the Strait of Hormuz, one of the world's most important energy transit routes. Iran continues to restrict much of the shipping activity through the strait, which normally handles around one-fifth of global crude oil and liquefied natural gas shipments.
At the same time, the United States has maintained restrictions on Iranian ports, adding to concerns over potential supply disruptions. Any prolonged interruption to shipping activity in the region could significantly impact global energy markets and support higher oil prices.
Despite ongoing tensions, U.S. Energy Secretary Chris Wright stated that shipping traffic in the Gulf and oil exports through the Strait of Hormuz have been increasing, even as diplomatic negotiations between Washington and Tehran remain challenging.
On the supply front, market sentiment was further strengthened by another significant decline in U.S. crude oil inventories.
According to market sources citing data from the American Petroleum Institute, U.S. crude inventories fell by 9.12 million barrels during the week ended 5 June, marking the eighth consecutive weekly decline. Gasoline inventories also dropped by 1.19 million barrels over the same period.
The continued reduction in stockpiles suggests stronger demand and tighter supply conditions. As the United States has played an important role in supplying crude oil and petroleum products to global markets during the conflict, lower inventories could limit export capacity and place additional upward pressure on prices.
WTI crude futures for July 2026 traded at US$89.10 per barrel, gaining US$0.90 or 1.02%. During the session, prices moved within a range of US$88.30 to US$89.95. Over the past 52 weeks, WTI crude has traded between US$54.98 and US$117.63.
Brent crude futures for August 2026 traded at US$92.48 per barrel, up US$0.67 or 0.73%. The contract recorded an intraday range of US$91.58 to US$93.25, while its 52-week range stands between US$58.72 and US$126.41.
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Crude oil prices remain supported by growing geopolitical tensions in the Middle East and tightening supply conditions following a sharp drawdown in U.S. inventories. With uncertainty surrounding the U.S.-Iran conflict and continued disruptions around the Strait of Hormuz, energy markets are likely to remain volatile in the near term.
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Published on: Jun 10, 2026, 9:14 AM IST
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