Oil prices gained on Wednesday, buoyed by escalating risk as U.S.-Iran talks remained tenuous, while draws of crude from key stockpiles suggested stronger demand. Brent crude oil futures were up 98 cents, or 1.4 per cent, at $69.78 a barrel by 0949 GMT. U.S. West Texas Intermediate crude rose 95 cents, or nearly 1.5 per cent, to $64.91.
“Ongoing tensions in the Middle East continue to support prices, although so far there has been no supply disruption,” said UBS oil analyst Giovanni Staunovo.
Iran’s foreign ministry spokesperson said on Tuesday that nuclear talks with the U.S. allowed Tehran to gauge Washington’s seriousness and showed enough consensus to continue on the diplomatic track.
However, U.S. President Donald Trump said on Tuesday he was considering sending a second aircraft carrier to the Middle East, even as Washington and Tehran prepare to resume negotiations aimed at averting a new conflict.
“While rhetoric remains belligerent at times, there are no signs, at least for now, of escalation, and the U.S. President believes that Iran will ultimately want to strike a deal on its nuclear missile programme,” PVM Oil Associate analyst Tamas Varga said in a note.
A slightly weaker dollar was also supporting prices. A stronger greenback hurts demand for dollar-denominated crude from foreign buyers.
Also supporting oil prices were signs of easing surplus, as markets absorbed some surplus barrels seen in the last quarter of 2025.
Crude draws from the stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub and from Fujairah suggested a tight market, UBS’ Staunovo said.
Traders are also waiting for weekly U.S. oil inventory data from the Energy Information Administration on Wednesday. U.S. crude inventories rose by 13.4 million barrels in the week ended February 6, market sources said, citing American Petroleum Institute figures on Tuesday.
