RoydadNaft –  Oil prices rose on Wednesday after the United States shot down an Iranian drone and Iranian boats approached a U.S.-flagged tanker, reviving fears of escalating tensions between Washington and Tehran ahead of scheduled negotiations.

According to Roydad Naft, Brent crude futures rose 46 cents, or 0.7%, to $67.79 per barrel (as of 10:34 GMT). U.S. West Texas Intermediate crude also rose 52 cents, or 0.8%, to $63.73.

Both benchmarks have fluctuated this week between news of talks to reduce tensions between the United States and Iran and heightened fears of potential disruptions to oil flows through the Strait of Hormuz.

At the same time, widespread stock selling—which often moves in tandem with oil prices—prevented further gains.

PVM analysts said in a note: “Without the Middle East threats and saber-rattling, oil prices would have been lower.”

U.S. military forces shot down an Iranian drone on Tuesday that had “aggressively” approached a U.S. aircraft carrier in the Arabian Sea, according to the U.S. military.

Separately, a group of armed Iranian boats approached a U.S.-flagged tanker north of Oman, according to maritime sources and a security consulting firm. The United States and Iran are scheduled to hold talks in Oman on Friday, according to a regional official.

OPEC members—Saudi Arabia, Iran, the United Arab Emirates, Kuwait, and Iraq—export most of their crude oil through the Strait of Hormuz, primarily to Asia.

Oil prices also received support from industry data showing a sharp decline in U.S. crude inventories. Sources, citing data from the American Petroleum Institute (API), reported that inventories in the world’s largest oil producer and consumer fell by more than 11 million barrels last week.

Official data from the U.S. Energy Information Administration (EIA) is scheduled for release at 15:30 GMT.

On Tuesday, oil prices also benefited from a U.S.-India trade agreement, which raised hopes for stronger global energy demand, while ongoing Russian attacks on Ukraine increased concerns that sanctions on Moscow’s oil would remain in place longer.