Middle East Alarm: Oil Rises
Oil prices rose sharply in Asian trading on Wednesday (February 4, 2026), after the market responded to two catalysts simultaneously: escalating US-Iran tensions and signals of tightening US supply from inventory data.
The April Brent contract rose around 1.2% to $68.15/barrel, while WTI strengthened 1.4% to $63.69/barrel at the time of reporting. This increase reflects the market's renewed risk premium for the Middle East.
The main trigger came from reports that the US military shot down an Iranian drone approaching the aircraft carrier USS Abraham Lincoln in the Arabian Sea. This incident immediately raised concerns about escalation, as it involved a large military asset in a strategic waterway.
Simultaneously, maritime reports indicated that Iranian gunboats were seen approaching a US-flagged tanker in the Strait of Hormuz—a key route for global energy exports. This situation heightened concerns about shipping security and potential disruptions to oil distribution.
Adding to market tensions, the series of incidents occurred ahead of scheduled US-Iran talks this week. However, there are signs of a tug-of-war over the format and scope of the negotiations—leaving market participants uncertain whether the dialogue will proceed smoothly or become increasingly difficult.
In addition to geopolitical factors, oil is also supported by industry data from the American Petroleum Institute (API): US oil stocks reportedly fell by 11.1 million barrels for the week ending January 30, contrary to market expectations that stocks had risen by 0.7 million barrels. This large decline is attributed to extreme cold weather that disrupted production and supply flows.
The combination of "Middle East risks + tightening US supplies" is usually a classic recipe for oil bulls: the market adds a risk premium for the possibility of supply disruptions, while weighing inventory data that supports the narrative of tighter supplies. If Hormuz headlines intensify, oil could remain sensitive and easily spike in the short term. (asd)
Source: Newsmaker.id
