Crude oil prices have appreciated on Wednesday following reports of a possible attack on Iran Nuclear facility by Israel.
Brent Crude rose to about 1% $66.03 per barrel early Wednesday while West Texas Intermediate rose to $63.09 per barrel. Murban Crude grade also rose to $66.1 per barrel.
The reaction comes following news that the US obtained new intelligence suggesting that Israel is making preparations to strike Iranian nuclear facilities.
This came even as the Donald Trump administration has been pursuing a diplomatic deal with Iran.
“Such a strike would be a brazen break with President Donald Trump”, CNN reported, citing U.S. officials.
Rising tensions between Israel and Iran could disrupt oil supply and drive up prices.
Experts believe this geopolitical risk could overshadow bearish signals, including a 2.5 million barrel inventory built by the American Petroleum Institute and Kazakhstan’s continued overproduction beyond its OPEC+ quota.
However, there are disagreement in U.S. government over the likelihood of Israel following through with its plans for a direct strike on Iran.
The International Energy Agency ,IEA, had revised its global oil demand growth forecast for 2025 upward by 20,000 barrels per day (bpd), projecting an overall increase of 741,000 bpd to reach 103.9 million bpd.
The revision reflects a more optimistic global economic outlook and lower oil prices, though gains were partially offset by weaker-than-expected demand data from non-OECD countries, particularly India.
The IEA expects oil demand growth to continue at a similar pace in 2026, with a projected rise of 760,000 bpd.
