By: Economy Middle east

Oil prices climbed on Wednesday, driven by heightened risks as diplomatic talks between the United States and Iran remained fragile. Brent crude oil futures rose 37 cents, or 0.54 percent, to $69.17 a barrel, while U.S. West Texas Intermediate (WTI) crude increased by 40 cents, or 0.63 percent, reaching $64.36. These gains come as traders weigh the potential for supply disruptions against efforts to revive diplomacy. While Iran’s foreign ministry spokesperson noted that recent nuclear talks in Oman showed enough consensus to continue, tensions were stoked by President Donald Trump‘s statement on Tuesday that he is considering deploying a second aircraft carrier to the Middle East as a precautionary measure if negotiations fail.

Shifts in global demand and supply

Market strength was also supported by signs of an easing global oil surplus, partly due to strategic shifts in purchasing by major consumers. Indian refiners, including Indian Oil Corp and Reliance Industries, are increasingly avoiding Russian oil for upcoming deliveries. This move is seen as a strategic effort to help New Delhi finalize a trade deal with Washington, which recently saw a reduction in reciprocal tariffs. Consequently, India is stepping up its crude oil purchases from the Middle East and West Africa, absorbing surplus barrels that had lingered from the final quarter of 2025.

Focus on U.S. inventory data

Investors are closely monitoring U.S. oil inventory data for further price direction. Preliminary figures from the American Petroleum Institute (API) indicated a substantial build of 13.4 million barrels in U.S. crude stocks for the week ending February 6. The official report from the Energy Information Administration (EIA) is expected later today. Traders remain cautious, balancing these high inventory levels against the significant geopolitical risk premium associated with the Strait of Hormuz—a vital maritime chokepoint through which approximately 20 percent of the world’s oil consumption passes.