Oil climbs 1% as US-Iran conflict worries overshadow large stock build

Oil prices climbed 1% in Asian markets on Wednesday as persistent tensions between the United States and Iran overshadowed bearish signals from a significant increase in U.S. crude inventories and ongoing trade uncertainties, with prices holding just below seven-month highs reached earlier this week. The geopolitical concerns surrounding potential conflict between the two nations have created a risk premium in the market, outweighing the typically bearish impact of growing stockpiles. Analysts note that while the American Petroleum Institute reported a substantial build in crude inventories, the market remains focused on the escalating rhetoric between Washington and Tehran, which has threatened oil supplies from the Middle East. This comes amid fresh trade uncertainties that have further complicated the market outlook, leaving investors to balance multiple competing factors in determining future price direction.