Brent crude trades above $104 a barrel
Prices gained in the face of escalating Houthi attacks in Saudi Arabia, a tanker strike in the Persian Gulf and growing U.S. offshore production shut-ins as Hurricane Isaias approached the coast.
The dollar remained firm as Treasury yields and oil prices rose amid continued tensions in the Middle East while the Fed's latest meeting minutes pointed to further rate increases.
NBC News reported that President Donald Trump and his national security team have talked about possibly restarting large-scale U.S. military operations in Iran in the coming weeks. The energy infrastructure remains threatened by Houthis' recent attacks on Saudi Arabia which included two attacks on the kingdom's airports in Jazan and Najran.
Oil rose in early Asian trade amid rising Middle East tensions that could intensify supply-disruption fears.
Governments and energy companies have drawn oil from stockpiles to alleviate pressure in a global oil market facing unprecedented supply disruptions this year due to the wars in the Middle East and Ukraine.
Commercial crude oil inventories fell by 3.2 million barrels to 424.1 million barrels in the week ended Oct. 2. Crude inventories were expected to have increased by 1.7 million barrels, according to a Wall Street Journal survey of analysts.
U.S. stock futures were little moved after the indexes surged in the last session, as still-higher Treasury yields and a fresh jump in oil prices failed to knock U.S. stock market exuberance.
Prices rose Wednesday as traders weighed fresh Houthi attacks in Saudi Arabia and storm-related U.S. Gulf production shut-ins against recovering Middle East crude supplies.
Oil rose in early Asian trade amid ongoing tensions in the Middle East that could sustain concerns over supply disruptions in the region.
Crude oil is facing downward pressure early on Tuesday.
The scramble is on for diesel, while damaged refineries and tight fuel supplies keep prices elevated around the world.