US-Iran Conflict Fuels Oil Price Rally Amid Supply Disruption Fears

Oil prices continued to rise on Wednesday, marking their fourth consecutive day of gains. The increase was driven by uncertainty over a resolution to the US-Iran conflict, which has been supporting risk premiums in the market.

US President Donald Trump stated that no talks were underway with Tehran and hinted at additional sanctions being announced this week. Reduced vessel traffic through the Strait of Hormuz has also raised concerns about potential oil supply disruptions.

The oil market received support from a slightly bullish API inventory report, which showed US crude inventories fell by 328k barrels last week, compared to market expectations for a 74k-barrel draw. Stocks at the WTI delivery hub in Cushing declined by 1.4m barrels.