Oil prices managed to eke out a third consecutive session of gains as the United States launched a fresh round of air strikes against Iran in response to recent attacks on vessels. However, gains were capped by US inventory data.
WTI crude rose 0.3% to settle at $79.60 a barrel, marking its highest level in a month. The benchmark has gained nearly 11% over the previous two trading sessions.
US President Donald Trump vowed to intensify bombing of Iran until Tehran halts attacks on ships in the Strait of Hormuz and agrees to open this critical energy transit chokepoint.
The US conducted a new wave of strikes late Wednesday, marking the fifth consecutive day of American military action against Iran.
Oil prices extended their gains in post-settlement trading following reports that President Trump favors expanding US military operations against Iran and has discussed seizing the island of Kharg.
Gains were limited by inventory data from the US Energy Information Administration released Wednesday. The data showed a large build in distillate stocks as demand weakened, and while overall petroleum exports grew, they remained below the recent pre-war average of around 4 million barrels per day.
Matt Smith, lead oil analyst for the Americas at market intelligence firm Kpler, stated, "A sharp drop in implied demand for distillates, coupled with refineries maintaining high run rates, drove the large stock build."
Oil prices have surged in recent sessions as conflict in the Middle East has escalated once more. Prices have climbed to their highest levels in about a month, partially recouping a roughly 30% decline from the second quarter.
WTI crude for August delivery rose 0.3% to settle at $79.60 a barrel.
Brent crude for September delivery rose 0.3% to settle at $84.95 a barrel.
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