Crude oil rises on Middle East supply risks

Crude oil rose above $86 a barrel on Wednesday as renewed tensions in the Middle East increased concerns about further disruptions to energy supplies.

The UAE announced a suspension of financial and economic transactions with Iran after accusing Tehran of launching ballistic missiles at its territory, while President Donald Trump said there were no ongoing talks aimed at ending the conflict.

Also, three China-linked supertankers turned back while transiting the waterway and a vessel was reportedly struck by a projectile near the strait.

Despite the heightened risks, Gulf producers have continued moving significant volumes of crude through alternative routes and discreet shipments.

US refinery activity provided additional support, with processing rates reaching their highest level since September 2019.

Still, US crude inventories increased by 4.4 million barrels last week, although distillate stocks fell by 1.5 million barrels to their lowest level in more than a month.