Oil prices rise over 1% on renewed geopolitical tensions in Middle East

Oil drilling rigs

Oil prices rose on Wednesday amid renewed geopolitical tensions in the Middle East, which could negatively impact the region’s supply, while markets await the release of US oil inventory data.

Brent crude futures for July delivery climbed by 1.6%, or $1.05, to $66.43 per barrel as of 8:07 am KSA time.

Meanwhile, US WTI crude futures for July delivery — the most actively traded contract — rose by 1.7%, or $1.06, to $63.09 per barrel.

According to CNN, citing sources familiar with the matter, new US intelligence suggests that Israel is preparing to strike Iranian nuclear facilities.

Markets are awaiting the release of the official weekly inventory report from the Energy Information Administration (EIA) later today, after estimates from the American Petroleum Institute showed crude inventories rose by 2.5 million barrels for the week ended May 16.