Middle East Supply Risks Boost Crude Oil Prices Amid US Inventory Increases

Crude oil prices continued their upward trend on Wednesday as concerns over Middle East supply risks kept buyers engaged. Despite signs of a significant increase in U.S. crude inventories, Brent crude rose to about $89.63 per barrel and West Texas Intermediate (WTI) climbed to roughly $83.91.

The rally is largely attributed to renewed doubts that Washington and Tehran will quickly reach an agreement to restore normal oil flows through the Strait of Hormuz. Shipping disruptions around Hormuz and the Bab el-Mandeb Strait have added to concerns about supplies moving out of the Middle East.

Iran has stated that the Strait of Hormuz will remain restricted without concessions from the United States, while vessel traffic through the waterway remains far below pre-conflict levels.