Oil Prices Climb to Highest Level in 5-Month

Oil prices climbed to their highest intraday levels since August on Wednesday, driven by mounting fears of a potential military confrontation between the United States and Iran.

U.S. benchmark West Texas Intermediate (WTI) rose as much as 4.6%, approaching $67 per barrel, while Brent crude traded near $71 per barrel, reflecting a growing geopolitical risk premium in global energy markets.

Latest Oil Prices

WTI Crude • 66.46 +0.06 +0.09%

Brent Crude • 71.66 +1.31 +1.86%

Murban Crude • 72.08 +1.35 +1.91%

Louisiana Light • 64.58 -0.82 -1.25%

Bonny Light • 78.62 -2.30 -2.84%

Opec Basket • 66.62 -1.44 -2.12%

Mars US • 69.79 -0.88 -1.25%

Gasoline • 2.013 +0.006 +0.32%

Natural Gas • 2.970 -0.026 -0.87%

The rally followed reports that a large-scale U.S. military operation in the Middle East could begin soon, heightening tensions in a region responsible for roughly one-third of global oil production.

The military buildup has also cast doubt on the prospects of a diplomatic resolution to Iran’s nuclear dispute. The head of the International Atomic Energy Agency warned that the window for diplomacy may be narrowing as tensions escalate.

The agency has discussed concrete inspection proposals with Tehran concerning sites struck by Israel and the United States last year.

Negotiations between Washington and Tehran have yet to yield a definitive outcome. Iranian officials have said a “general understanding” has been reached regarding elements of a potential nuclear agreement, while a U.S. official indicated Iranian negotiators would return to Geneva within two weeks with a revised proposal.

Meanwhile, the United States imposed visa restrictions on Iranian officials and executives in response to Tehran’s recent crackdown on protests.

Speaking at a meeting of his newly formed “Peace Council” in Washington, President Donald Trump said the U.S. must reach a “meaningful agreement” with Iran, adding that the next 10 days would be critical in determining whether diplomacy remains viable. Oil pared gains briefly following his remarks before resuming its upward trajectory.

Analysts at RBC Capital Markets, including Helima Croft, said unresolved core disputes increase the likelihood of military confrontation.

“The massive U.S. military presence in the region, coupled with recent Iranian naval maneuvers in the Strait of Hormuz, suggests the early stages of a second conflict sequence,” the analysts wrote in a note.

A potential conflict could jeopardize oil flows through the Strait of Hormuz — a critical chokepoint for global energy shipments.

Adding to bullish momentum, U.S. crude inventories fell by 9 million barrels, the largest draw since early September, according to data from the U.S. Energy Information Administration. Fuel stockpiles also declined broadly, reinforcing concerns over tightening supply.

Risk sentiment has also intensified in oil options markets. Bullish call options have traded at substantial premiums to puts for most of the year, as traders hedge against further price spikes. On Wednesday alone, options equivalent to 10 million barrels of June Brent crude with a $100 strike price changed hands.