Oil prices edge higher on Wednesday after falling earlier in the session, with markets watching the Iran-Israel conflict and the possibility of direct U.S. involvement.
Brent crude gains 28 cents to $76.73 a barrel by 1236 GMT, and U.S. West Texas Intermediate adds 40 cents to $75.24. Both contracts had dropped more than 1% earlier.
The increase follows a 4% rise on Tuesday. Traders weigh the impact of supply disruptions as U.S. President Trump warns of growing frustration with Iran and calls for its “unconditional surrender.” Iran’s leader Ayatollah Ali Khamenei rejects the demand.
Trump’s comments raise concerns about deeper U.S. involvement, including the option of striking Iranian nuclear sites.
Direct U.S. action may widen the conflict and raise the risk to energy infrastructure in the region. Almost one-third of global seaborne oil passes through the Strait of Hormuz, a potential chokepoint in case of conflict.
Iran produces about 3.3 million barrels per day, making it OPEC’s third-largest oil producer. Iran’s UN ambassador says Tehran has informed Washington it will respond if the U.S. joins Israel’s campaign.
Oil market focus also turns to the U.S. Federal Reserve, expected to hold interest rates steady between 4.25% and 4.50%. Some market participants expect a possible rate cut in July if growth risks rise.
Lower rates can lift demand for oil, but conflict-related price spikes may create new inflation pressures.
U.S. crude inventories fall by 10.1 million barrels for the week ending June 13, according to figures from the American Petroleum Institute. Official government data is expected later Wednesday.
