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EMEA Oil Update: Crude Rises for Third Day as Tension Escalates in Middle East

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Crude futures rose for a third consecutive session on Wednesday, as Middle East hostilities flared with Iranian missile strikes on Kuwait and Bahrain.

Front-month Murban crude futures advanced by 1.9% to $97.88 per barrel, while Brent futures rose 2.2% to $98.12/bbl.

"Oil edged higher as the US-Iran standoff showed no visible progress toward reopening the Strait of Hormuz," Saxo Bank analysts said.

The immediate catalyst for the market rally was the outbreak of fresh regional hostilities, following reports of Iran firing missiles directly at Kuwait and Bahrain.

The Islamic Revolutionary Guard Corps reportedly said that the only safe route for transit via the strait is designated by its own naval forces.

ANZ noted that crude edged higher as broader diplomatic tracks struggled to stay viable, especially after media reports surfaced indicating that Hezbollah will not accept any partial ceasefire framework with Israel.

Iranian state media openly questioned the integrity of the peace talks, directly challenging optimistic statements from the White House.

However, President Trump dismissed widespread media reports of a diplomatic freeze as "false and erroneous," insisting that backchannel discussions between Washington and Tehran are ongoing, in a post on Truth Social.

Data released late Tuesday by the American Petroleum Institute revealed that US crude oil inventories fell by 6.75 million barrels for the week ended May 29.

The energy market is now awaiting US Energy Information Administration petroleum inventory report, scheduled for release later on Wednesday.

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