Key Moments
- Brent crude rose $1.41, or 2.1%, to $70.21 a barrel, while U.S. WTI gained $1.36, or nearly 2.1%, to $65.31 by 1156 GMT.
- Rising U.S.-Iran tensions and ongoing Middle East uncertainty supported prices, even as analysts noted no current supply disruptions.
- Crude draws at the Amsterdam-Rotterdam-Antwerp hub and Fujairah pointed to a tighter market, ahead of U.S. inventory data after a 13.4 million barrel build in the prior week.
Prices Firm on Geopolitics and Demand Signals
Oil futures advanced around 2% on Wednesday, supported by concerns that escalating tension between the United States and Iran could threaten supply, while recent withdrawals from key crude storage centers indicated improving demand.
| Contract | Price | Change | Percent Change | Time |
|---|---|---|---|---|
| Brent crude futures | $70.21 per barrel | $1.41 | 2.1% | 1156 GMT |
| U.S. WTI crude | $65.31 per barrel | $1.36 | nearly 2.1% | 1156 GMT |
“Ongoing tensions in the Middle East continue to support prices, although so far there has been no supply disruption,” said UBS oil analyst Giovanni Staunovo.
U.S.-Iran Dynamics Under Close Watch
Market participants remained focused on U.S.-Iran relations. Iran’s foreign ministry spokesperson said on Tuesday that nuclear discussions with the United States had given Tehran a way to assess Washington’s level of seriousness and had revealed sufficient common ground to keep pursuing diplomacy.
At the same time, U.S. President Donald Trump said on Tuesday he was considering deploying a second aircraft carrier to the Middle East, even as Washington and Tehran were preparing to resume talks aimed at preventing a fresh confrontation.
“While rhetoric remains belligerent at times, there are no signs, at least for now, of escalation, and the U.S. President believes that Iran will ultimately want to strike a deal on its nuclear missile programme,” PVM Oil Associates analyst Tamas Varga said in a note.
Currency Moves and Stock Draws Lend Additional Support
A modestly softer U.S. dollar also provided a tailwind for crude. A weaker greenback tends to make dollar-priced oil more accessible to buyers using other currencies, while a stronger one can dampen demand for dollar-denominated crude from foreign purchasers.
Prices were further underpinned by indications that excess supply was easing as the market continued to absorb additional barrels that had appeared during the last quarter of 2025.
Staunovo noted that crude withdrawals from independently held stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub, as well as from Fujairah, pointed to a tightening market.
Traders Eye U.S. Inventory Data
Attention was also turning to U.S. government inventory figures due from the Energy Information Administration on Wednesday. Ahead of that release, market sources, citing data from the American Petroleum Institute on Tuesday, said U.S. crude stocks had increased by 13.4 million barrels in the week ended February 6.
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