Oil climbs amid fresh Middle East hostilities, stalled peace talks in Oil & Companies News 03/06/2026 Oil prices extended gains on Wednesday amid renewed hostilities in the Middle East and stalled negotiations between the U.S. and Iran, while industry data showing a sharp decline in U.S. crude inventories added to the bullish tone. As of 05:05 ET (09:05 GMT), Brent oil futures expiring in August, the global oil benchmark, rose 2.5% to $98.35 per barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed 2.7% to $96.25 per barrel. Both contracts advanced more than 1% in the previous session. Investors remained focused on the Middle East, where hopes for a breakthrough in U.S.-Iran talks have eased amid a fresh exchange of strikes between both sides. Meanwhile, Israel has continued military operations in southern Lebanon, and Kuwait said its air defenses intercepted hostile missile and drone attacks from Iran. U.S. forces conducted strikes on Iran’s Qeshm Island, the U.S. Central Command said in a post on X on Tuesday. The island lies near the Strait of Hormuz, a vital waterway through which roughly one-fifth of the world’s oil passes. Reports suggested that communication between Washington and Tehran had stalled in recent days, despite U.S. President Donald Trump maintaining that negotiations were ongoing. Iranian media have cast doubt on the prospects for a near-term agreement, prompting traders to price in a higher geopolitical risk premium. Another round of talks involving Israel and Lebanon is scheduled for Wednesday. Supporting prices further, data from the American Petroleum Institute showed U.S. crude inventories fell by 6.8 million barrels in the week ended May 29, significantly exceeding expectations for a draw of 3.6 million barrels. Market participants are now awaiting official inventory figures from the U.S. Energy Information Administration due later on Wednesday. Investors also await a series of U.S. economic indicators due later on Wedn