RoydadNaft –  Brent crude oil futures climbed by $1.56, or 1.6%, to $97.56 per barrel. U.S. West Texas Intermediate (WTI) crude futures rose by $1.61, or 1.7%, to $95.37 per barrel.

According to Roydad Naft, oil prices rose more than 1% on Wednesday, extending gains from the previous session as tensions in the Middle East flared up again and negotiations between Tehran and Washington showed little progress.

Brent crude futures gained $1.56, or 1.6%, to reach $97.56 per barrel as of 06:40 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures increased by $1.61, or 1.7%, to $95.37 per barrel.

Both benchmarks reached their highest levels in a week during the previous trading session.

Emril Jamil, Senior Oil Analyst at LSEG, said: “The suspension of U.S.-Iran negotiations and warnings from the International Energy Agency regarding critically low global inventories have added new layers of risk premium to benchmark prices.”

On Tuesday, the head of the oil and markets division at the International Energy Agency (IEA) warned that if the current pace of inventory drawdowns continues, global oil stockpiles could fall to critical levels ahead of the peak summer demand season.

Traders remain focused on diplomatic developments. Iranian media reported on Tuesday that Tehran is reviewing a proposed agreement with Washington aimed at halting the conflict.

According to reports, Iran has had no direct communication with the United States for several days, although President Trump stated that discussions have continued on an ongoing basis.

Daniel Hynes, Senior Commodity Strategist at ANZ Bank, noted that any attempt to fully reopen the Strait of Hormuz would face significant challenges, as Iran has reportedly mined large sections of the strategically important waterway.

Hynes added: “The number of vessels attempting to transit the route has increased slightly, but overall traffic remains significantly below pre-conflict levels.”

More than three months after U.S. and Israeli strikes on Iran, the conflict remains deadlocked, with only a fragile ceasefire in place.

On the supply side, U.S. crude oil inventories declined for the seventh consecutive week. The figures were reported by market sources citing data released Tuesday by the American Petroleum Institute (API).

Crude oil stockpiles fell by 6.8 million barrels in the week ending May 29.

Official U.S. government inventory data is scheduled to be released at 10:30 a.m. Eastern Time (14:30 GMT) on Wednesday.