WTI crude oil prices surged during Wednesday’s Asian trading session, briefly climbing above $63 per barrel. The sharp rise was driven by reports suggesting Israel might be preparing for a military strike on Iran’s nuclear facilities, reigniting geopolitical tensions in the Middle East.
U.S. media cited several American officials who observed unusual Israeli military activity—such as targeted air drills and adjusted bomb configurations—hinting that Israel could be gearing up for a potential offensive. While Israel has not confirmed any definitive plans, the movements have fueled growing concerns over regional instability.
As geopolitical risks intensified, oil markets reacted quickly. WTI jumped more than 2.5% to reach $63.19 per barrel, while Brent crude also climbed to $66.40. Analysts warn that if Israel proceeds with an attack, Iran might retaliate by threatening to block the Strait of Hormuz—a key chokepoint through which roughly 20% of the world’s oil flows. Such a scenario could significantly disrupt global supply.
Adding to the uncertainty, diplomatic tensions between the U.S. and Iran remain high. President Trump has recently revived discussions around the nuclear deal, pressing Iran to halt uranium enrichment. Tehran, however, maintains its nuclear program is for peaceful purposes and has rejected imposed conditions. If negotiations falter, observers say Israel could act independently.
Meanwhile, the American Petroleum Institute (API) reported a surprising 2.5 million barrel increase in U.S. crude stockpiles last week—outpacing forecasts and hinting at a possible cooling in short-term demand. Nevertheless, in light of geopolitical tensions, this bearish inventory data had limited impact on market sentiment.
Investors are now closely watching Israel’s next move and anticipating new inventory data from the U.S. Energy Information Administration (EIA). With supply fundamentals and geopolitical risks intertwining, oil prices are likely to remain volatile in the near term. Staying tuned to global developments is essential.
