WTI crude oil futures rose above $66 per barrel on Wednesday as traders weighed mounting geopolitical risks against a sharp increase in US inventories. Ahead of Thursday’s high-stakes nuclear talks in Geneva—featuring envoys Steve Witkoff and Jared Kushner—President Trump used his State of the Union address to warn of “very bad consequences” if Iran fails to comply with “zero enrichment” demands. Heightening tensions further, reports emerged that Iran is seeking Chinese anti-ship cruise missiles to counter the US naval presence off its coast.
This geopolitical risk premium remains elevated even after the American Petroleum Institute reported a substantial 11.43 million-barrel jump in US crude stockpiles last week. Although global supply currently outstrips demand, market attention is firmly fixed on possible disruptions in the Strait of Hormuz. Investors are now awaiting the official EIA inventory data and the outcome of the diplomatic talks to gauge whether prices can hold at these seven-month highs.
