WTI crude oil futures extended their advance by 2%, climbing to $95.70 per barrel after EIA data showed a sixth straight weekly decline in US crude inventories. Stockpiles fell by 7.97 million barrels last week, the largest draw since February and nearly double market expectations for a 4-million-barrel decrease.
On the geopolitical front, President Donald Trump stated that Iran had agreed not to pursue a nuclear weapon and indicated he might meet Supreme Leader Mojtaba Khamenei if developments continued to progress positively. Nevertheless, tensions between Washington and Tehran remained high as negotiations over an interim peace agreement continued.
The backdrop has been further complicated by Israel’s expanding operations in Lebanon. Trump confirmed he had urged Israeli Prime Minister Benjamin Netanyahu to de-escalate the conflict during a recent phone call. Overnight, US and Iranian forces were involved in one of the most serious confrontations since the ceasefire began, leaving Kuwait and Bahrain caught in the crossfire.