Oil prices edged higher on Wednesday, finding some respite after plummeting in the last two sessions, as investors assessed the stability of a ceasefire between Iran and Israel.
Brent crude futures rose 75 cents, or 1.1 per cent, to $67.89 a barrel. US West Texas Intermediate (WTI) crude gained 71 cents, or 1.1 per cent, to $65.08.
Brent settled on Tuesday at its lowest since June 10 and WTI since June 5, both before Israel launched a surprise attack on key Iranian military and nuclear facilities on June 13.
Prices had rallied to five-month highs after the US attacked Iran’s nuclear facilities over the weekend.
US airstrikes did not destroy Iran’s nuclear capability and only set it back by a few months, according to a preliminary US intelligence assessment, as a shaky ceasefire brokered by US President Donald Trump took hold between Iran and Israel.
Earlier on Tuesday, both Iran and Israel signaled that the air war between the two nations had ended, at least for now, after Trump publicly scolded them for violating a ceasefire.
As the two countries lifted civilian restrictions after 12 days of war – which the US joined with an attack on Iran’s uranium-enrichment facilities – each sought to claim victory.
Direct US involvement in the war had investors worried about the Strait of Hormuz, a narrow waterway between Iran and Oman, through which between 18 million and 19 million barrels per day (bpd) of crude oil and fuel flow, nearly a fifth of global consumption.
Investors awaited US government data on domestic crude and fuel stockpiles due on Wednesday. US crude fell by 4.23 million barrels in the week ended June 20, market sources said, citing American Petroleum Institute figures on Tuesday.
