OPEC Oil Output Lowest in More Than 2 Decades Amid Shipping Blockades, Reuters Survey Shows

US Centcom Launches Fresh Strikes on Iran; State Media Reports Multiple Explosions Across Iran

US Oil Update: Crude Rallies as Oil Inventories Drop, Trump Renews Pressure on Iran

Crude oil futures settled higher in after-hours trading on Wednesday, buoyed by a larger-than-expected draw in US crude stockpiles and heightened geopolitical tensions in the Middle East after President Trump's threats of renewed military strikes against Iran.Front-month West Texas Intermediate crude futures rallied 4.1% to $91.85 per barrel, while Brent futures advanced 3.6% to $94.70/bbl.Soojin Kim, research analyst at MUFG, said that the latest escalation threatens to prolong restrictions on traffic via the Strait of Hormuz, while declining US crude inventories underscore tightening supply conditions.US crude oil inventories decreased by 7.2 million barrels to 426.5 mmbbls in the week ended June 5, the Energy Information Administration said in its weekly report on Wednesday.Crude inventories are now about 5% below the five-year average for this time of year, the agency said.The EIA said US Strategic Petroleum Reserve inventories dropped to 349.2 mmbbls for the week ended June 5, down from 357.1 mmbbls a week ago, marking a weekly decline of 7.9 mmbbls.On Wednesday, Trump said that the US would hit Iran "very hard" again, escalating his rhetoric as he pressed Tehran to sign a deal."We're going to be attacking them, attacking them very hard," Trump told reporters at the White House on Wednesday. "We hit them hard yesterday [Tuesday], and we're going to hit them hard again today."Earlier, Trump criticized Iranian authorities for stalling peace deal negotiations on Wednesday, saying Tehran will now have to "pay the price", without specifying what actions Washington planned to take.The US President also said that he had ordered a "secret mission" to support commercial vessels via the Strait of Hormuz, an operation that enabled over 100 million barrels of crude to transit the key chokepoint into global markets.Jorge Leon, senior vice president and head of geopolitical analysis at Rystad Energy, said in a note on Wednesday that it is too early to say whether the current escalation marks a full resumption of hostilities.Leon said that uncertainty is reflected in today's oil price action, with Brent front-month prices rising to about $94.5/bbl.Meanwhile, Iran's Speaker of Parliament Mohammad Baqer Qalibaf said on Wednesday that any act of aggression against Tehran will be met with an immediate and decisive response.Iranian Foreign Minister Abbas Araghchi also said that the US had "opted to test our determination" despite what he described as battlefield setbacks, warning that Tehran would respond to any further attacks.The rhetoric by American and Iranian officials follows renewed attacks between the two sides overnight, further straining a fragile ceasefire between the two sides.The US military struck Iranian targets after Trump vowed on Tuesday to respond to the downing of an American Apache helicopter, the US Central Command said in a social media post on X.Iran, in response, targeted several Gulf countries, with Jordan's military saying it had intercepted five Iranian missiles, while Bahrain sounded alarms and Kuwait activated its air defenses to intercept "hostile aerial targets."

Market Chatter: Trump Reviews Additional Military Options Against Iran Amid Stalled Talks

US President Donald Trump met with his national security team Wednesday afternoon to review possible new military action against Iran as negotiations remained deadlocked, Axios reported, citing two US sources.One option under discussion involves a large-scale but limited-duration operation designed to pressure Tehran into changing its position in the talks, sources reportedly said.Diplomatic efforts continued in Tehran on Wednesday, where Qatari officials sought to break the deadlock in negotiations between Iran and the US, the report added.Earlier in the day, Trump warned Iran of further military action during a White House event for the signing of the Secure America Act, saying the US would "hit them again hard today."The US targeted Iranian radar and air defense facilities on Tuesday in response to Iran's downing of a US helicopter earlier. However, the strikes were designed to still leave the option for negotiations open.Washington limited the scope of Tuesday's operation to keep diplomatic channels open, even as the administration grew increasingly impatient over the lack of an Iranian response to its latest proposal, the report added.Senior US officials, including Vice President JD Vance, Secretary of State Marco Rubio, Central Intelligence Agency Director John Ratcliffe and General Dan Caine, attended the Situation Room meeting, while Defense Secretary Pete Hegseth joined remotely from US Central Command headquarters in Tampa, according to the sources.The White House did not immediately respond to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)