Oil prices are volatile, rebounding due to geopolitical tensions related to reported attacks on Iranian energy infrastructure and continued conflict in the Middle East. Supply concerns stemming from potential disruptions in Iranian output and limited Iraqi export capacity are countered by news of increasing US crude inventories. The market remains sensitive to developments in the region and supply/demand dynamics.
- WTI crude oil futures rebounded to near $97 a barrel.
- Reports of an attack on Iran’s South Pars gas field, shared with Qatar, surfaced.
- Iranian state TV claimed US and Israeli airstrikes targeted South Pars and nearby petrochemical facilities.
- South Pars reached record daily output of 730 million cubic meters in 2025.
- Iranian attacks on Israel and Gulf states continued.
- Iraq plans to resume exports via a pipeline to Turkey’s Ceyhan port, but volumes will be limited.
- API data showed US crude inventories rose 6.56 million barrels last week.
Escalating conflict in a key production region, coupled with supply constraints, could lead to price increases. However, a build in US crude inventories may temper these rises, reflecting potentially weaker demand or greater supply availability in the US market. The market is facing conflicting forces, with geopolitical risk contributing to upward pressure and inventory builds suggesting a possible counterbalance.