WTI and Brent crude jump sharply on Iran standoff and inventory draw

Oil prices jumped sharply on Wednesday as supply-disruption fears tied to the U.S.-Iran standoff met a supportive U.S. inventory draw.

Reuters reported that Brent crude rose 6.1% to $118.03 a barrel at settlement and briefly traded above $120 intraday. West Texas Intermediate climbed about 7% to $106.88 a barrel.

The rally was driven by deadlocked U.S.-Iran negotiations and concern that Middle East tensions could keep oil supply off the market. Reuters also said U.S. government data showed a larger-than-expected weekly draw in crude and fuel inventories, adding to the bullish tone.

The move underscores how quickly geopolitics can ripple through energy markets, especially with the Strait of Hormuz remaining a central risk point for global shipping and crude flows.

For now, traders are watching whether the rally extends into the next session or whether any fresh diplomatic or inventory data cools the move.