Oil Prices Rebound on Surprise Missile Attack and Bullish Inventory Report

Oil prices rebounded significantly in early Asian trading on Wednesday after a surprise missile attack by Iranian forces and a bullish inventory report from the American Petroleum Institute.

The Brent crude price surged to $87.95 per barrel, up 4.59%, while West Texas Intermediate traded at $82.89, up 4.58%.

The previous session's losses were largely unwound as hopes of a diplomatic breakthrough between the US and Iran were dampened by the missile attack, which was intercepted by US Central Command forces.

Adding upward pressure to oil prices was a drawdown in U.S. crude inventories, with the American Petroleum Institute reporting a 3.3 million barrel drop last week.