Oil prices moved higher in early trade on Wednesday as investors reacted to fresh signs of strain in US-Iran diplomacy, raising concerns over the durability of the interim ceasefire in the four-month-long conflict.
Brent crude futures rose 50 cents or 0.69% to $73.45 a barrel at 1208 GMT, while US West Texas Intermediate climbed 63 cents or 0.91% to $70.13.
Sentiment was hit after reports that Iran would not meet US envoys who had travelled to Doha, opting instead to engage only with mediators. The development has clouded hopes for progress in ongoing talks involving Qatar as a facilitator.
In parallel, geopolitical attention remains fixed on efforts to stabilise shipping routes through the Strait of Hormuz, a key global oil artery that has seen disruptions during the conflict.
Market participants are also weighing signals from Washington, where officials have emphasised the importance of maintaining open energy flows through the strait as part of broader regional stability efforts.
On the supply side, prices found support from industry data showing US crude inventories fell by 6.1 million barrels in the week ended June 26, according to American Petroleum Institute figures cited by market sources. Gasoline stocks also declined over the same period.
Investors are now awaiting official inventory data from the US Energy Information Administration due later on Wednesday, which could provide further direction for short-term price movements.
Despite recent gains, both Brent and US crude remain well below earlier peaks, with markets still adjusting to shifting expectations around supply risks and global demand recovery as tensions in the Middle East continue to evolve.
