Brent crude oil futures pushed toward $68 per barrel on Wednesday, extending gains from the previous session as fresh geopolitical tensions in the Middle East revived concerns over supply security and lifted risk premiums across energy markets.
Sentiment turned firmer after U.S. forces downed an Iranian drone near an American aircraft carrier in the Arabian Sea, an incident that briefly unsettled markets despite diplomatic reassurances from Washington. President Donald Trump said engagement with Tehran remains active, with the White House confirming that U.S.–Iran talks are still scheduled for Friday.
Tensions were further heightened by reports that Iranian vessels challenged a U.S.-flagged oil tanker transiting the Strait of Hormuz. U.S. Central Command said the Islamic Revolutionary Guard Corps harassed the Stena Imperative, drawing renewed attention to the fragility of a waterway that carries roughly a fifth of the world’s seaborne oil.
Oil prices also found support in signs of tightening U.S. supply. Data from the American Petroleum Institute showed crude inventories fell by 11.1 million barrels last week. If confirmed by official figures, the draw would be the largest since June, reinforcing expectations of a firmer near-term balance.
Meanwhile, focus is shifting to OPEC+, which expects oil demand to begin gradually improving from March or April. The group is set to decide on March 1 whether to resume monthly output increases after maintaining a production pause through the first quarter.
With geopolitical risks resurfacing in a critical energy corridor and inventories pointing to a tighter market, traders say crude prices remain highly sensitive to headlines, as supply security concerns once again take centre stage.
