ISTANBUL

Oil prices increased on Wednesday amid concerns of supply disruptions after reports suggested Israel is preparing a possible strike on Iranian nuclear facilities.

International benchmark Brent crude rose by around 0.67%, trading at $65.55 per barrel at 10.23 a.m. local time (0723 GMT), up from $65.11 at the previous session's close.

Similarly, US benchmark West Texas Intermediate (WTI) increased by about 0.75%, settling at $62.64 per barrel, compared to $62.17 in the prior session.

On Tuesday, CNN reported that new intelligence obtained by the US suggests that Israel is making preparations to strike Iranian nuclear facilities, even as negotiations continue between Tehran and Washington over Iran's nuclear program.

While no final decision has been made by Israeli leaders, "intercepted Israeli communications and observations of Israeli military movements" suggest an imminent strike, CNN reported, citing multiple sources familiar with the intelligence.

However, a source familiar with the Donald Trump administration's thinking said that Washington is unlikely to support an Israeli operation against Iranian nuclear sites unless provoked by Tehran.

Iran's supreme leader Ayatollah Ali Khamenei said Tuesday that he does not believe the ongoing indirect nuclear negotiations between Tehran and Washington will lead to "any meaningful outcome."

Experts say rising geopolitical tensions are likely to push oil prices higher due to fears of supply disruptions from a major OPEC producer and potential instability in the Strait of Hormuz.

Meanwhile data from the American Petroleum Institute (API) showed US crude inventories rose by 2.5 million barrels for the week ending May 16. The data, signaling weaker demand in the world's top oil consumer, put downward pressure on prices.

Official inventory data from the US Energy Information Administration (EIA) is due later in the day.