Oil prices edge up as markets monitor fragile Iran-Israel ceasefire 

SINGAPORE: Oil prices inched higher on Wednesday, recovering slightly after sharp declines over the past two sessions, as markets weighed the durability of a tentative ceasefire between Iran and Israel.  

Brent crude rose by 75 cents, or 1.1 per cent, to reach $67.89 a barrel, while US West Texas Intermediate (WTI) crude increased by 71 cents, also 1.1 per cent, to $65.08. 

Both benchmarks had settled at their lowest levels in weeks on Tuesday, Brent at its lowest since June 10 and WTI since June 5, wiping out gains made after Israel launched a surprise strike on key Iranian military and nuclear sites on June 13.  

Oil prices had earlier surged to five-month highs following US airstrikes on Iranian nuclear facilities over the weekend. However, a preliminary US intelligence report suggested that the attacks did not destroy Iran’s nuclear capabilities but only delayed its progress by a few months.  

The rise in oil prices came as a shaky ceasefire between Iran and Israel, brokered by US President Donald Trump, appeared to be holding. On Tuesday, both countries indicated that active fighting had stopped, at least temporarily, following public criticism from Trump over their violations of the truce.  

After nearly two weeks of conflict, during which the US joined in with strikes on Iranian uranium enrichment facilities, civilian restrictions in both countries were lifted, and each side claimed strategic success.  

The involvement of the US in the conflict raised fears over potential disruptions to oil supply through the Strait of Hormuz, a vital shipping route between Iran and Oman. Around 18 to 19 million barrels of crude and fuel pass through the strait daily, accounting for nearly one-fifth of global oil consumption.  

Traders were also awaiting official US government data on domestic oil and fuel inventories, due later on Wednesday. According to industry group American Petroleum Institute, US crude stocks fell by 4.23 million barrels in the week ending June 20. 

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