Oil Jumps 8% on U.S.-Iran Escalation Risk, First Inventory Draw Since July

Brent and WTI futures rose sharply in volatile trading as markets price in the risk of prolonged U.S.-Iran military escalation threatening supply, compounded by a 4.5-million-barrel draw in U.S. crude inventories—the first since late July. The escalation risk is the primary driver, with the inventory draw adding a supportive but secondary signal. Uncertainty centers on whether the conflict expands to disrupt Strait of Hormuz flows, which would have outsized impact on global supply.