Oil prices rose more than 1% on Wednesday as new US sanctions hit Iran and American crude inventories dropped sharply. Brent reached $68.44 per barrel, while US crude touched $64.66. These gains followed a strong Tuesday performance, showing signs of tighter global oil supply.
The US imposed fresh sanctions on an Iranian oil shipping network, increasing concerns about disrupted supplies. This move targeted a major figure in Iran’s energy trade. As a result, markets feared less oil would reach the global market, driving prices up quickly. Experts say this may cause more volatility ahead.
At the same time, US crude inventories fell by 4.6 million barrels last week, far more than expected. This sharp drop showed stronger demand and less available oil. Investors viewed this data as a sign of market tightening, which gave oil prices another push upward.
Meanwhile, President Trump eased tensions by stepping back from threats to remove the Fed chair and hinted at lower China tariffs. These signs of softer US policies added to market optimism. Now, traders await official oil stockpile data to confirm the ongoing supply squeeze.