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

WTI crude oil futures surged beyond $63 per barrel on Wednesday, following reports suggesting that Israel is contemplating an attack on Iranian nuclear sites. Although it remains uncertain whether Israel has finalized its decision, the possibility has already triggered anxiety over potential supply disruptions in the Middle East, a critical region for oil production. There are growing worries that Iran might retaliate by closing the Strait of Hormuz, a strategic passageway for the export of oil and fuel from leading Gulf producers, including Saudi Arabia, Kuwait, Iraq, and the UAE. The concerns over supply are further compounded by the ongoing uncertainty of ceasefire negotiations between the United States and Russia regarding the Ukraine conflict. On a somewhat reassuring note, data from the American Petroleum Institute (API) indicated that U.S. crude oil inventories increased by 2.5 million barrels last week, following a previous rise of 4.3 million barrels, contrary to expectations of a 1.9 million-barrel decrease.