Oil Gains Momentum While Peace Talks Remain at a Standstill
Oil prices extended gains on Wednesday after Iran launched missile attacks on Kuwait and Bahrain, while diplomatic negotiations between Tehran and Washington showed little progress.
Brent crude rose 81 cents to $96.81 a barrel, while US West Texas Intermediate climbed 91 cents to $94.67. Both benchmarks settled at one‑week highs in the previous session.
The US military said Iran fired ballistic missiles toward the two Gulf nations but failed to hit targets. American forces conducted strikes on Iran’s Qeshm Island in response.
Analysts said stalled negotiations and warnings from the International Energy Agency about critically low global oil inventories are adding upward pressure on prices. The IEA has cautioned that stock draws could hit critical levels ahead of peak summer demand.
Meanwhile, efforts to reopen the Strait of Hormuz remain difficult. Iran has mined large portions of the vital waterway, and despite a slight increase in vessel traffic, total transits remain far below pre‑conflict levels.
US crude inventories fell for a seventh straight week, according to industry data, with government figures due later Wednesday.
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