Data showing a sharper-than-expected drop in US crude oil inventories, reports that the US administration is evaluating involvement in Israel's potential strikes on Iran, and the Federal Reserve's (Fed) decision to keep interest rates unchanged are all contributing to the rise in oil prices on Thursday.
International benchmark Brent crude increased by around 0.8%, trading at $75.77 per barrel at 10.35 a.m. local time (0735 GMT), up from $75.12 at the previous session's close.
Similarly, US benchmark West Texas Intermediate (WTI) increased by about 1.2%, settling at $73.83 per barrel, compared to $72.98 in the prior session.
The US Energy Information Agency (EIA) reported that commercial crude oil inventories in the country fell by approximately 11.5 million barrels last week, down to 420.9 million barrels. Market expectations had predicted a decline of only around 2.3 million barrels.
Experts note that current US stock levels are about 10% below the five year average. Lower inventory levels highlight increasing demand in the world's biggest consumer.
Adding to market concerns, media reports indicated that former US President Donald Trump asked military advisors whether a bunker buster bomb could destroy Iran's Fordow Nuclear Facility.
According to Axios, unnamed US officials said Washington is considering possible involvement in Israel's actions against Iran. The Pentagon reportedly confirmed the bomb's effectiveness, though it remains unclear whether Trump was convinced.
ABC News reported that Trump showed interest in a potential attack on Fordow, believing it would require multiple strikes. Preparations for such an operation were allegedly set in motion.
Analysts warn that escalating geopolitical tensions in the Middle East—a region that holds the majority of global oil reserves—are fueling fears of supply disruptions from key producers, further boosting prices.
Meanwhile, the Fed's decision to keep interest rates steady has also supported prices. Following a two-day Federal Open Market Committee (FOMC) meeting, the Fed announced it would maintain the federal funds target range at 4.25% to 4.50%.
The statement highlighted continued low unemployment and a strong labor market, while noting that "inflation remains somewhat elevated."
Analysts believe the Fed may still cut rates twice this year.
Lower interest rates could weaken the US dollar against other currencies, increasing demand for oil and pushing prices higher.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr