Oil prices gained Wednesday on fears of supply disruptions amid escalating geopolitical tensions in the Middle East and the prospect of tougher US sanctions on Russian crude.
Brent crude was trading at $66.85 per barrel at 9.13 a.m. local time (0613 GMT), up 0.7% from the previous close of $66.38. US benchmark West Texas Intermediate (WTI) rose 0.7% to $62.95.
The gains followed Israeli airstrikes on senior Hamas leaders in Doha, a move that Qatar denounced as “treacherous” and “state terrorism.”
Qatar, alongside Egypt and the US, has been mediating a Gaza cease-fire after Israel’s war killed more than 64,000 Palestinians since October 2023.
Geopolitical risks added to market jitters after Russia launched its largest aerial assault on Ukraine since the start of the war, setting fire to a government building in Kyiv.
Meanwhile, trade tensions between the US and India persisted. Trump announced Tuesday that negotiations continue to address barriers between the two countries, following Washington's decision in August to impose tariffs of up to 50% on Indian imports in retaliation for New Delhi's continued purchases of Russian oil.
Investors turned their attention to US inventory data, which pointed to weaker demand.
The American Petroleum Institute reported a crude stock build of 1.25 million barrels for the week ending September 5, compared with expectations for a 622,000-barrel rise.
By Ebru Sengul Cevrioglu
Anadolu Agency
energy@aa.com.tr