Brent Turns Lower Despite Mideast Escalation

Brent fell toward $91 per barrel on Wednesday, reversing gains from earlier in the session even as escalating tensions in the Middle East threatened to undermine peace negotiations. Iran launched attacks against several Gulf nations, including Bahrain, Jordan, and Kuwait, after the US carried out “self-defense strikes” in response to the downing of an American helicopter. Oil prices also faced pressure ahead of a key US inflation report that could reinforce the case for a Federal Reserve interest rate hike later this year. Higher borrowing costs are expected to eventually curb economic activity, clouding the outlook for global growth and energy demand. Meanwhile, industry data from the API showed US crude inventories dropped by 9.1 million barrels last week to their lowest level in four months, as buyers sought to replace supplies disrupted by the turmoil in the Persian Gulf.

Brent climbed above $92 per barrel on Wednesday, recovering part of the previous session’s losses after the US launched new strikes against Iran following the downing of an American helicopter, raising concerns over the durability of a fragile ceasefire and the outlook for a longer-term peace agreement. The US military said President Donald Trump ordered the “self-defense strikes” in response to an Apache helicopter being shot down. Iranian Foreign Minister Abbas Araghchi responded that Iran’s armed forces would not leave any attack or threat unanswered. Brent prices had tumbled as much as 4.9% on Tuesday after Israel and Iran agreed to suspend hostilities following a renewed flare-up in the conflict. Meanwhile, industry data from the API showed US crude inventories fell by 9.1 million barrels last week to their lowest level in four months, as buyers sought to replace supplies disrupted by the turmoil in the Persian Gulf.

Brent decreased to 89.68 USD/Bbl, the lowest since April 2026. Over the past 4 weeks, Brent Crude Oil lost 13.85%, and in the last 12 months, it increased 34.25%.