Global oil prices remained near recent highs on Wednesday as traders weighed renewed military threats by US President Donald Trump against Iran, keeping geopolitical concerns firmly embedded in energy markets. Brent crude slipped below $111 per barrel after declining 0.7 percent in the previous session, while West Texas Intermediate crude traded near $104 per barrel.

Despite the slight pullback, both benchmark contracts have remained sharply elevated as tensions in the Middle East continue to threaten supply routes through some of the world’s most critical oil transport corridors. Markets have remained highly sensitive to developments involving Iran and the possibility of renewed US military action, particularly after repeated warnings from Washington in recent weeks.

Trump warned that the United States could launch fresh strikes if Tehran failed to accept American peace terms, stating that Iran may face “another big hit” if negotiations collapse. His comments came less than 24 hours after he said a previously planned attack had been called off. The US president later suggested Iran had only a limited window to respond, indicating that a decision could come within “two or three days” or early next week.

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Oil traders, however, have become increasingly cautious in reacting to Trump’s statements due to frequent shifts in his position since the ceasefire announced on April 8. While the White House has repeatedly threatened military escalation, it has also signalled openness to diplomacy, creating uncertainty over whether the conflict will intensify further or move toward negotiations.

Supply concerns have remained elevated as the conflict enters its 12th week and continues to disrupt shipping through the Strait of Hormuz, a strategic chokepoint that normally handles roughly one-fifth of global crude oil flows. Reports also indicated that the United States had seized another Iran-linked tanker in the Indian Ocean, adding to pressure on Tehran’s oil exports and shadow shipping fleet.

Additional support for crude prices came from indications of tightening US oil inventories. Industry data showed American crude stockpiles fell by 9.1 million barrels last week, potentially marking the largest weekly drawdown since September if confirmed by official government figures. Meanwhile, reports that NATO could consider escorting commercial ships through the Strait of Hormuz if disruptions continue beyond early July raised the possibility of measures aimed at stabilising global energy supply routes.

Also Read: Oil Prices Rise As Iran Conflict Continues To Tighten Global Energy Supplies