Crude Prices Climb After US Downs Iranian Drone Near Carrier
The US downs an Iranian drone in the Arabian Sea, lifting Brent to $67.33 amid Middle East tensions and an inventory drop.
International crude oil prices moved higher on Wednesday after the United States shot down an Iranian drone near an American aircraft carrier in the Arabian Sea, an incident that heightened geopolitical tensions and unsettled global energy markets.
Brent crude, the global benchmark, rose nearly 1.6% to $67.33 per barrel, while West Texas Intermediate (WTI) advanced toward $64 a barrel. The gains reflected renewed concerns over supply disruptions in the Middle East, which accounts for roughly a third of the world’s crude oil production. Brent prices are now up nearly 11% on a month-to-date basis, driven largely by escalating regional risks.
The US military said the drone was brought down close to a US aircraft carrier operating in the Arabian Sea. While the incident raised immediate alarm among investors, President Donald Trump sought to ease fears, stressing that diplomatic channels with Iran remain open. The White House confirmed that scheduled US-Iran talks are still expected to take place on Friday, according to reports.
Also Read: European Officials Warn of Imminent US Attack on Tehran Amid Iran Protests
Tensions were further amplified by reports that Iranian vessels challenged a US-flagged oil tanker transiting the Strait of Hormuz, a critical maritime chokepoint through which about a quarter of the world’s seaborne oil trade passes. US Central Command said the Iranian Revolutionary Guard Corps harassed the tanker Stena Imperative, while Iranian media claimed naval forces had warned a vessel to leave Iranian territorial waters for failing to produce valid documentation.
Market sentiment was also influenced by supply data from the American Petroleum Institute, which showed US crude inventories fell by 11.1 million barrels last week. If confirmed by official government figures, this would mark the largest weekly drawdown since June, adding further upward pressure on prices.
Looking ahead, attention is also focused on the OPEC+ alliance, which has indicated that global oil demand may begin to pick up from March or April. The group is scheduled to decide on March 1 whether to resume monthly output increases following a pause in the first quarter, a move that could play a key role in shaping oil prices in the coming months.
Also Read: Tensions Rise as Trump Warns Action While Iran Seeks Talks Amid Protests
