Oil Holds Near $70 as Iran Tensions Eclipse Supply Concerns

Oil prices steadied near the $70-a-barrel mark on Wednesday as escalating geopolitical tensions surrounding Iran overshadowed bearish supply data from the United States, reinforcing a risk premium across global energy markets.

Brent crude traded above $69 per barrel, while U.S. West Texas Intermediate (WTI) hovered near $65, as investors weighed the possibility of heightened confrontation in the Middle East against signs of swelling American crude inventories.

Latest Oil Prices

WTI Crude • 64.95 +0.99 +1.55%

Brent Crude • 69.71 +0.91 +1.32%

Murban Crude • 69.47 +0.45 +0.65%

Louisiana Light • 65.94 +2.99 +4.75%

Bonny Light • 78.62 -2.30 -2.84%

Opec Basket • 66.65 +1.71 +2.63%

Mars US • 69.79 -0.88 -1.25%

Gasoline • 1.985 +0.026 +1.32%

Natural Gas • 3.181 +0.066 +2.12%

The gains came despite an industry report showing a sharp rise in U.S. stockpiles. The American Petroleum Institute reported that crude inventories increased by 13.4 million barrels last week, potentially the largest weekly build since November 2023. Traders are awaiting official government data to confirm the figures.

Markets appeared more responsive to geopolitical developments than to supply fundamentals. Reports that Washington is considering seizing tankers carrying Iranian oil, along with the potential deployment of an additional U.S. aircraft carrier strike group to the region if nuclear negotiations falter, have intensified concerns over possible supply disruptions.

Although early-stage talks regarding Iran’s nuclear program have been described as constructive, uncertainty remains high. A breakdown in negotiations could lead to renewed U.S. military action or retaliatory measures from Tehran, potentially disrupting crude flows from the OPEC member state.

U.S. President Donald Trump said Iran’s leadership “wants to make a deal” but warned that failing to do so would be a mistake. Trump is scheduled to meet Israeli Prime Minister Benjamin Netanyahu at the White House later Wednesday to discuss regional developments. Ahead of the meeting, Netanyahu’s office indicated that discussions with Iran should extend beyond the nuclear file to include Tehran’s long-range conventional weapons capabilities and regional proxy networks.

The renewed diplomatic and military signaling has injected fresh volatility into oil markets already sensitive to Middle East developments.

Despite the sizeable inventory build in the U.S., analysts note that the market reaction has been muted. “If negotiations go in the wrong direction, the U.S. may take very strong action,” said one commodities strategist in Asia, adding that traders appear largely unconcerned with stockpile fluctuations at this stage.

As of late morning trading in New York, April Brent futures were up around 1.5% at approximately $69.85 per barrel, while March WTI futures gained 1.6% to trade near $65.03.

While geopolitical developments are keeping prices supported for now, analysts caution that unless tensions translate into concrete supply disruptions, oil may struggle to sustain sharp gains. Historically, risk-driven rallies have often faded once immediate fears subside.