Crude oil jumped more than 4% toward $83 per barrel on Wednesday, breaking a three-session losing streak, as renewed conflict in the Middle East reignited geopolitical tensions after several days of relative calm and stoked fresh concerns over potential disruptions to energy supplies. The US military reported that it had successfully intercepted what it described as a surprise Iranian attack targeting US forces stationed across the region. At the same time, Iran-backed militias in Iraq launched drones for a second consecutive day at oil facilities in Saudi Arabia’s Eastern Province, though the full extent of the damage has yet to be determined.
On the diplomatic front, Iran rejected an Omani proposal for joint 50-50 control of the Strait of Hormuz, insisting instead that Tehran must retain full control of the inbound shipping lane and part of the outbound route. In the US, data from the American Petroleum Institute indicated that crude inventories fell by 3.3 million barrels last week, underscoring persistent tightness in global oil supplies.