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Oil prices are on the rise, hitting an 18-month high as of Tuesday as the conflict between the United States, Israel, and Iran continues.
Oil inventories, excluding the Strategic Petroleum Reserve, rose by 3.5 million barrels. Analysts expected inventories to have risen by 1.6 million barrels.
The Trump administration is pledging more support for the oil trade in the Persian Gulf after unveiling a pair of measures on Tuesday.
Headlines will continue to be the main driver here in the oil markets, as supply disruptions are by far the biggest worry.
While Iran is estimated to produce less than 5% of the world's oil, it has major influence over the Strait of Hormuz, through which more than 20% of the world's daily oil demand flows. Iran has already fired on some ships in the strait and traffic through the passageway is at a standstill.
Treasury Secretary Bessent says U.S. will make 'series of announcements' to support oil trade in the Gulf
Goldman warns cost of crude could hit $100 a barrel
The banking giant upgraded short-term Brent crude prices by $10 a barrel to $76.
U.S. equity futures pointed to another day of falls. Stocks in Japan and Korea fell dramatically, but selling in European shares eased at market open.
A widening Middle East conflict and potential disruption to oil markets have renewed inflation risks. Central banks are balancing a delicate task of weighing inflationary impulse against the growth drag.
Oil rose in early Asian trade. There's an escalation of Middle East tensions and risks of oil supply disruptions, Commerzbank Research said.