WTI crude oil futures traded above $65 per barrel on Thursday, extending the prior session’s sharp rally—the strongest since late October—amid mounting concerns that US military intervention in Iran may be imminent. Reports suggested that any such operation would likely take the form of a weeks-long campaign, with the Israeli government pushing for an outcome aimed at regime change in the Islamic Republic.
Diplomatic efforts have so far produced no definitive breakthrough. Tehran has said it reached a “general agreement” with Washington on the framework for a possible nuclear deal, while US Vice President JD Vance maintained that Iran has not met key American red lines. President Donald Trump also reiterated that the use of military force remains on the table.
On the fundamentals side, industry data showed that US crude inventories fell by 0.61 million barrels last week, partly reversing the previous week’s 13.4 million-barrel build, which had been the largest increase since January 2023.
