Oil Resumes Gains Amid Anticipation of U.S. Reaction to Iran

SadaNews - Oil regained its gains after a previous decline, as investors await the repercussions of the U.S. stance regarding the unrest in Iran, amid reports of directives for some personnel to leave a U.S. airbase in Qatar.

Brent crude prices for March contracts increased by 0.4% to reach $65.68 per barrel by 10:17 AM London time, while West Texas Intermediate crude for February delivery rose to $61.34.

U.S. President Donald Trump urged Iranians to continue their protests against the regime of Supreme Leader Ali Khamenei, stating that he "will take the necessary actions" once he has a clearer picture of the number of casualties among the demonstrators.

Trump indicated that his anticipated decision will be based on the results of a National Security Council meeting that took place on Tuesday without his presence, to outline potential options for the president, according to a source familiar with the content of the meeting, as reported by the "Washington Post".

Monitoring Iranian Unrest and Supply Risks

Traders are closely observing the unrest in Iran and the possibility of U.S. intervention, which could threaten the country's oil production of about 3.3 million barrels per day.

In this context, U.S. Energy Secretary Chris Wright told "Fox News" that the United States would be "happy to be a trade partner" for Iranian oil in the event of the regime's collapse.

Oil gained ground at the start of the new year as the unrest in the fourth largest producer in OPEC, alongside turmoil in Venezuela, added pressure to the prices, following a series of five monthly losses driven by expectations of an oversupply. This price surge surprised a market burdened with bearish bets.

U.S. Inventory Data and Black Sea Tensions

Chou Mi, an analyst at a research institute affiliated with "Chaus Turnery Futures", stated: "The market remains stuck between the reality of oversupply and escalating geopolitical risks."

He added: "In the short term, developments in Iran may lead to a new wave of price volatility, and any military move by the U.S. is likely to push oil prices higher."

Regarding the actual market, an industry report indicated that U.S. crude inventories rose by 5.3 million barrels last week.

If the expected official data confirms this increase later on Wednesday, it would be the largest rise in two months. The report from the "American Petroleum Institute" also showed increases in gasoline and distillate inventories.

In the Black Sea, two tankers came under attack near the Caspian Pipeline Consortium terminal, complicating Kazakhstan's oil export process, as planned shipments were already affected by bad weather and damage to loading berths.