International crude oil prices rose on Wednesday following the US downing of an Iranian drone near an American aircraft carrier in the Arabian Sea. The incident unsettled energy markets, though President Donald Trump emphasized that diplomatic channels remain open, with the White House confirming US-Iran talks are still scheduled for Friday, as per reports.
Brent, the global benchmark, rose nearly 1.6% to $67.33 per barrel, while West Texas Intermediate advanced toward $64. Brent is up nearly 11% on a month-to-date basis amid tensions in the Middle East, a source of about a third of the world’s crude.
Adding to tensions, Iranian vessels challenged a US-flagged oil tanker transiting the Strait of Hormuz, the narrow chokepoint that allows ships to enter and exit the Persian Gulf and accounts for about a quarter of the world’s seaborne oil trade. The US Central Command said the elite Iranian Revolutionary Guard Corps harassed the Stena Imperative.
Iranian media said the country’s naval forces warned a vessel to leave Iranian territorial waters after failing to produce the necessary legal documents.
Moreover, data from the American Petroleam Institute in the US showed crude inventories fell by 11.1 million barrels last week, the largest draw since June if confirmed by official figures.
Elsewhere, oil producers’ cartel OPEC+ expects oil demand to gradually pick up from March or April and will decide on March 1 whether to resume monthly output increases after a first-quarter pause.
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