Crude oil pared earlier gains to settle near $86.50 a barrel on Wednesday, after briefly touching $88, rebounding from a 10-week low amid ongoing tensions in the Middle East. US Treasury Secretary Scott Bessent has reportedly relocated from his Washington residence to a military base for security reasons as Iranian threats intensify. According to reports, US officials have recently observed Iranian plots against American targets advancing to a more developed stage, and Bessent’s prominent role in the US–Iran conflict has allegedly made him a primary target.
Iranian officials have denied that any negotiations are taking place. Security chief Mohsen Rezaei said assertions that talks are ongoing are intended to “ease economic pressures and reduce oil prices.” Separately, US Secretary of State Marco Rubio reportedly stated that military action against Iran might not be required if existing economic sanctions and Washington’s naval blockade remain effective.
At the same time, Ukrainian drone attacks have disrupted Russian refineries accounting for roughly 30% of the country’s total oil-processing capacity since late October, adding another layer of risk to global supply.