FX.co ★ Brent Rises on Israel-Iran Strike Reports

On Wednesday, Brent crude oil futures surged past $66 per barrel amid reports that Israel may be contemplating a strike on Iranian nuclear facilities. Although it remains uncertain whether Israel has reached a definitive decision, the news has heightened worries about potential disruptions in the oil-rich Middle East. Concerns are also intensifying over the possibility of Iran responding by blocking the crucial Strait of Hormuz, a vital passage for oil exports from major Gulf producers like Saudi Arabia, Kuwait, Iraq, and the UAE. Additional supply concerns stem from the ambiguity surrounding ceasefire negotiations between the US and Russia regarding the Ukraine conflict. However, some of these fears were alleviated by the American Petroleum Institute's data showing that US crude oil inventories increased by 2.5 million barrels last week, building on a 4.3 million-barrel rise the previous week, which contradicted expectations of a 1.9 million-barrel reduction.